U.S. stocks drop as recession fears persist
Dec 17, 2022
New York [US], December 17: Wall Street's major averages fell on Friday as market participants remain concerned about the economic and profits landscape.
The Dow Jones Industrial Average fell 281.76 points, or 0.85 percent, to 32,920.46. The S&P 500 dipped 43.39 points, or 1.11 percent, to 3,852.36. The Nasdaq Composite Index sank 105.12 points, or 0.97 percent, to 10,705.41.
All the 11 primary S&P 500 sectors ended in red, with real estate and consumer discretionary down 2.96 percent and 1.74 percent, respectively, leading the slide.
On Thursday, U.S. equities plunged, which saw the Dow close down more than 760 points in its worst day since September.
The market sell-off came as investors grew fearful that tighter monetary policy would tip the U.S. economy into a recession.
The Federal Reserve raised rates by 50 basis points on Wednesday, and signaled that further action would be needed to curb inflation.
Its updated economic projections showed policymakers moving their 2023 federal funds rate forecasts from 4.6 percent in September to 5.1 percent this month.
The new projections also showed upgraded forecasts for inflation and downgraded growth estimates for 2023 and 2024, unnerving investors.
For the week, the Dow fell 1.7 percent, the S&P 500 lost 2.1 percent and the Nasdaq dropped 2.7 percent.
Source: Xinhua
