The stock market fell the most since June 2020 as Wall Street recognizes that inflation is not slowing as much as hoped. The Dow lost more than 1,250 points and the S&P 500 sank 4.3%
The Dow dropped 1,250 points Tuesday as Wall Street posted its worst day since June 2020 amid dashed inflation hopes.Stocks tumbled to their worst day in more than two years Tuesday, knocking the Dow Jones Industrial Average down more than 1,250 points, following Wall Street's humbling realization that inflation is not slowing as much as hoped.&P 500 sank 4.3%, its biggest drop since June 2020. The Dow fell 3.9% and the Nasdaq composite closed 5.2% lower.
The thinking was that such a slowdown would let the Fed downshift the size of its rate hikes through the end of this year and then potentially hold steady through early 2023."This piece of data just hammered home that the Fed isn't going to have the data to do anything differently than continue on their rate-raising path for longer," said Tom Martin, senior portfolio manager with Globalt Investments. "It just increases the chance of an actual recession.
The inflation figures were so much worse than expected that traders now see a one-in-three chance for a rate hike of a full percentage point by the Fed next week. That would be quadruple the usual move, and no one in the futures market was predicting such a hike a day earlier. Higher rates hurt the economy by making it more expensive to buy a house, a car or anything else bought on credit. Mortgage rates have already hit their highest level since 2008, creating pain for the housing industry. The hope is that the Fed can pull off the tightrope walk of slowing the economy enough to snuff out high inflation, but not so much that it creates a painful recession.
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Stock markets suffer biggest fall since June 2020 on dashed inflation hopesThe stock market fell the most since June 2020 as Wall Street recognizes that inflation is not slowing as much as hoped. The Dow lost more than 1,250 points and the S&P 500 sank 4.3%
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Stock markets suffer biggest fall since June 2020 on dashed inflation hopesThe stock market fell the most since June 2020 as Wall Street recognizes that inflation is not slowing as much as hoped. The Dow lost more than 1,250 points and the S&P 500 sank 4.3%
Read more »
Stock markets suffer biggest fall since June 2020 on dashed inflation hopesThe stock market fell the most since June 2020 as Wall Street recognizes that inflation is not slowing as much as hoped. The Dow lost more than 1,250 points and the S&P 500 sank 4.3%
Read more »
Stock markets suffer biggest fall since June 2020 on dashed inflation hopesThe stock market fell the most since June 2020 as Wall Street recognizes that inflation is not slowing as much as hoped. The Dow lost more than 1,250 points and the S&P 500 sank 4.3%
Read more »
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