U.S. stock-market losses deepened Friday afternoon, with the S&P 500 index trading below its 2022 closing low reached in June, as major benchmarks head for weekly losses after bond yields and the dollar rose in the wake of the Federal Reserve’s interest rate hike on Wednesday. How stock indexes are trading
The Dow Jones Industrial Average
shed almost 764 points, or 2.5%, to around 29,313
The S&P 500
dropped 102 points, or 2.7%, to about 3,656.
The Nasdaq Composite
tumbled 306 points, or 2.8%, to around 10,761.
For the week, the Dow is on pace to fall 4.9% while the S&P 500 is on track to slide 5.6% and the Nasdaq is heading for a 6% drop, according to FactSet data, at last check.
What’s driving markets U.S. stocks fell sharply as market volatility climbs in the wake of the Federal Reserve delivering a third straight, jumbo interest-rate hike of three quarters of a percentage point. “Recession risks have increased and no one wants to be the last one out squeezing out through the door,” said Russell Evans, managing principal and chief investment officer at Avitas Wealth Management, in a phone interview Friday. “The market is rushing to get ahead of what the market sees as being inevitable.” Investors are worried that a so-called soft landing for the U.S. economy is diminishing as the central bank keeps up its aggressive pace of tightening monetary policy in an effort to fight high inflation. After on Wednesday announcing its latest large rate hike, Fed Chair Jerome Powell warned again that its job is not done. “People interpreted this week’s action and rhetoric as more hawkish,” said Evans. The S&P 500 is trading around its 2022 closing low of 3666.77 hit June 16, while the Dow is trading below its June closing low. That puts the Dow on track to potentially finish at a new trough this year. See: Fed will tolerate a recession, and 5 other things we learned from Powell’s press conference Treasury yields have surged since the Fed’s policy rate decisi …