Dow closes 500 points lower, Nasdaq sheds 3% as Fed Chair Powell signals intent to continue hiking rates; European markets close lower as investors focus on the Fed’s next move
Stocks tumbled Wednesday after Federal Reserve Chair Jerome Powell said inflation was still too high and indicated that the central bank has more rate hiking ahead.
The Dow Jones Industrial Average slid 505.44 points, or 1.55%, to settle at 32,147.76. The S&P 500 dropped 2.5% to close at 3,759.69, while the Nasdaq Composite dove 3.36% to finish at 10,524.80.
The Fed implemented another 0.75 percentage point rate increase Wednesday afternoon, and Powell said in a press conference that its inflation fight was far from done.
The pan-European Stoxx 600 index provisionally ended down 0.3%, with major bourses and most sectors in negative territory. Household goods fell 1.7% to lead losses, while health care stocks added 1.1%.
German electric light maker AMS-Osram rose 8% in afternoon deals after reporting solid third-quarter revenues and operating profitability in line with expectations.
Maersk, the world’s largest container shipping firm, saw its shares fall more than 7% after posting record profits for the third quarter on the back of high ocean freight rates, but noted a slowdown in demand.
Source: CNBC, Investing.com