by Chuck Mikolajczak
NEW YORK (Reuters) – The New York Stock Exchange ended lower on Thursday as investors feared a recession in the economy after the Federal Reserve (Fed) made its biggest rate hike since 1994 to stem inflation .
The Dow Jones index fell -2.42%, or 741.46 points, to 29,927.07 points.
The broader S&P-500 fell 123.22 points, or -3.25%, to 3,666.77 points.
The Nasdaq Composite fell for its part by 453.06 points (-4.08%) to 10,646.10 points.
After the US Federal Reserve (Fed) rate hike of 75 basis points on Wednesday evening, the Swiss National Bank (SNB) surprised Thursday by raising its key rate for the first time in 15 years by 50 basis points.
The Bank of England (BoE), for its part, announced on Thursday a quarter-point increase in its key rate, its fifth increase since last December.
“That’s what people are reassessing today – how likely is a recession and will corporate earnings be in line with analysts’ estimates or will they be downgraded,” said Tom Hainlin, strategist at US Bank Wealth Management.
All eleven major S&P-500 sectors were down, with the consumer sector outperforming the market.
Hopes that the Fed could stage a soft landing are fading and analysts at Wells Fargo have estimated the probability of a recession in the United States is now over 50%.
In values, Walmart, General Mills and Hormel Foods were among the only members of the S&P 500 to have progressed during the session.
The index of growth stocks, meanwhile, fell by 4%.
( Camille Raynaud)
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