Stocks lose 2% on Thursday as investors fear the Fed is tipping the economy into a recession; European stocks close 2.8% lower as ECB says ‘significant’ rate increases still to come
Stocks fell sharply Thursday after new data showed retail sales fell more than expected in November, raising fears that the Federal Reserve’s relentless interest rate hikes are tipping the economy into a recession.
The Dow Jones Industrial Average fell 760 points, or 2.2%, heading for its worst day since September as hopes for a year-end rally diminished. The S&P 500 dropped 2.4% bringing its decline for December to nearly 5%. The Nasdaq Composite tumbled 3% as the battered tech-heavy index stretched its 2022 losses to more than 31%.
Shares of Netflix fell more than 9% following a Digiday report that said the streaming firm is offering to return money to advertisers after missing viewership targets.
Shares of Roblox tumbled more than 17% after the gaming company’s November business update showed slowing growth, as well as a drop in what it earns from daily active users.
Shares of the drugmaker Novavax plummeted more than 27% after it proposed a sale of up to $125 million in common stock and a $125 million convertible debt offering.
The pan-European Stoxx 600 closed 2.8% lower provisionally, with technology shedding 4.6%, retail dropping 4%, and travel and industrials falling 3.5%.
Thursday was a big day for central banks in Europe, with monetary policy decisions from the Bank of England, European Central Bank and Swiss National Bank. All three opted for 50 basis point hikes to interest rates as they try to rein in inflation.
Source: CNBC, Investing.com