Stocks tumble on fears about faster rate hikes
Stocks sank Tuesday after the head of the Federal Reserve warned it could turn the dial back up on its hikes to interest rates if pressure stays high on inflation. The warning shook markets and raised worries about a possible recession down the line.
The S&P 500 dropped 1.5%. The Dow Jones Industrial Average lost 574 points, or 1.7%, while the Nasdaq composite fell 1.2%.
Inflation and what the Fed is doing about it have been at the center of Wall Street’s sharp swings this year. After seeming to be on a steady decline since last summer, reports on inflation last month came in surprisingly hot. So did a suite of other data on the economy.
The Fed’s chair, Jerome Powell, on Tuesday said the recent reports mean “the ultimate level of interest rates is likely to be higher than previously anticipated.”
The S&P 500 fell 62.05 points Tuesday to 3,986.37. The Dow lost 574.98 to 32,856.46, and the Nasdaq sank 145.40 to 11,530.33. The Russell 2000 index of smaller companies fell 21.03 points, or 1.1%, to 1,878.72.
Coming soon: Reese’s Cups made from plants
Reese’s Peanut Butter Cups are getting the vegan treatment.
The Hershey Co. said Tuesday that Reese’s Plant Based Peanut Butter Cups, which go on sale this month, will be its first vegan chocolates sold nationally.
A second plant-based offering, Hershey’s Plant Based Extra Creamy with Almonds and Sea Salt, will follow in April.
The chocolates are made with oats instead of milk, Hershey said.
Hershey sold an oat-based chocolate bar called Oat Made in some test markets starting in 2021.
Hershey said consumers want choice and are looking for products they consider healthier or with fewer ingredients, including reduced sugar and plant-based options. Hershey also introduced an organic version of Reese’s Cups in February 2021.
FDA: Two more eyedrop brands recalled
U.S. health officials are alerting consumers about two recalls of eyedrops due to contamination risks that could lead to vision problems and serious injury.
The Food and Drug Administration posted recall notices for certain eyedrops distributed by Pharmedica and Apotex. Pharmedica is recalling two lots of Purely Soothing 15% MSM Drops. Apotex said in an email that the eyedrops were manufactured in Canada. The company hasn’t received any reports of injuries related to the drops.