Stocks tumbled worldwide Friday on more signs the global economy is weakening, just as central banks raise the pressure even more with additional interest rate hikes.
&P 500 fell 2.2% in early afternoon trading, adding a dismal cap on what's already been a rough week. It's almost all the way back to its lowest point of the year, reached in mid-June, as Wall Street remains mired in its bear market. The Dow Jones Industrial Average is nearly 20% below its record set early this year. If it closes at or below that level, it would join other major indexes that already passed the threshold.
"Financial markets are now fully absorbing the Fed's harsh message that there will be no retreat from the inflation fight," Douglas Porter, chief economist at BMO Capital Markets. The Dow Jones Industrial Average fell 602 points, or 2%, to 29,489 and the Nasdaq fell 2.1% as of 12:05 p.m. Eastern. Smaller company stocks did even worse. The Russell 2000 fell 3%. U.S. crude oil prices slipped 6.1% and weighed heavily on energy stocks.
The higher rates mean Goldman Sachs strategists say a majority of their clients now see a "hard landing" that pulls the economy sharply lower as inevitable. The question for them is just on the timing, magnitude and length of a potential recession.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Dow tumbles 700 points into bear market territory, sets a new low for the yearStocks fell Friday morning as investors continued responding to the Fed's decision.
Read more »
European stocks open in the red as investors digest central bank movesEuropean stocks open lower Friday, as investors digest a raft of central bank decisions.
Read more »
State Sen. Emil Jones III to be arraigned Friday on bribery chargesIllinois state Sen. Emil Jones is scheduled to be arraigned on federal charges Friday. The charges allege he took bribes from a red-light camera company in exchange for killing legislation that went against the company’s interests.
Read more »
Stock Market News Today: Dow Falls 500 Points as Indexes Drop FridayThe Dow fell to its lowest level of the year, extending a selloff amid new signs of slowing global growth
Read more »
Stocks Making the Biggest Moves Midday: FedEx, Boeing, Ally, Domino's and MoreThese are the stocks posting the largest moves in midday trading.
Read more »