Skip to content

Trending News

Exclusive
16 hours agoHow (and Why) to Do Domain Background Check with Bill Hartzer 16 hours agoNorth Kitsap man’s $60K investment account drained in fraud, leaving only 32 cents behind 17 hours agoYou Can Get Travel Insurance Without Paying for It Out-Of-Pocket 18 hours agoDigital diabetes management: With insights at home and abroad, where should today’s business model head? 19 hours agoCapital One Spark Business Checking Review 2022
Saturday, May 21, 2022
hollywoodstarshoney hollywoodstarshoney

Long Life Business

May 21 2022

How (and Why) to Do Domain Background Check with Bill Hartzer

Nov 1 2018

Clothes

Nov 1 2018

Systemwide Enterprise & Finance

Nov 1 2018

Detailing House Improvement Initiatives At #bayberryhouse

Nov 1 2018

Vive Healthy Sport And Nutrition

Jan 1 2019

Enterprise

Primary Menu
  • Business Management
  • Business Analysis
  • Business Banking
  • News Business
  • About Us
    • Contact Us
    • Advertise Here
    • Privacy Policy
    • Sitemap
  • Home
  • Dow plunges more than 1,000 points in Wall Street’s worst day of the year

Dow plunges more than 1,000 points in Wall Street’s worst day of the year

Posted On : May 8, 2022 Published By : Patricia A. Eldridge
Fed Chair Jerome Powell helped reassure investors Wednesday afternoon, saying that future rate hikes larger than 50 basis points are “not something the [Fed] is actively considering,” leading to a bullish surge in markets. The major indexes all grew by around 3%, and the S&P 500 and Dow had their best days in nearly two years.

But investors woke up with a binge-trading hangover Thursday, and markets catapulted into the red as they further digested the Fed news.

All of yesterday’s gains were erased by midday and markets only got worse from there.

The Dow dropped 1,120 points, or 3.3%, the S&P 500 fell 3.7%. The Nasdaq Composite tumbled 5.2%, its worst day since 2020.

“I’ve been in the markets for 25 years and I’ve never seen anything like this,” said Danielle DiMartino Booth, CEO and chief strategist for Quill Intelligence, a Wall Street and Federal Reserve research firm. “It’s violent not just volatile.”

Related Posts:

  • Stocks Slump After Murky Jobs Report as Markets Swing | Business News

DiMartino Booth thinks the massive drop only makes sense if you classify yesterday’s surge as a melt-up “The markets were so poised to rally yesterday and there were probably a lot of people who were short and had to rush to cover, today is a backlash,” she said.

Beware the 'melt-up:' Analysts say stocks may soar just before they collapse

The rapid market swings indicate that equities markets still haven’t figured out what to do about the Fed, wrote John Lynch, chief investment officer for Comerica Wealth Management, in a note Thursday. The question they need to answer, he said, is not an easy one: “How could technology and growth sustainably lead the market higher with the Fed’s acknowledgment of inflation and commitment to higher rates?”

Even without future interest rate hikes of 75 basis points, quantitative tightening presents a threat to economic growth and to markets that have become used to accommodating Fed policy. “There may be some pain associated with getting back to that, but the big pain is in not dealing with inflation and allowing it to become entrenched,” Powell warned during his Wednesday afternoon press conference.

Market drops like today’s are unusual and reminiscent of 2008 and 2009, said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research. But economic conditions are much stronger than they were at the start of the Great Recession, leaving analysts scratching their heads searching for a catalyst, he said.

So what changed between last night and today to cause investors to flip 180 degrees? “The tea leaves are hard to read right now,” Frederick said. “But this could be a sign of market capitulation, where investors are panicked to the point of throwing in the towel.” Capitulation, he added, can also indicate that we’ve reached a market bottom.

Large tech stocks led losses Thursday. Big tech is particularly vulnerable to rising rates because their promise of future innovation and subsequent earnings are valuable to investors.

Facebook parent company Meta fell by nearly 6.8%, Amazon was down 7.6%, and Google parent company Alphabet toppled 4.7%.

“In all policy moves, however, there are negative consequences, which hopefully are muted, and are less impactful than the issue that is being addressed,” wrote Rick Rieder, BlackRock’s chief investment officer of global fixed income in a note Wednesday. “The consequences we risk in policy tightening are potential recession, potential lost jobs and wages, and clearly tighter financial conditions that will weigh on virtually all financial markets.”

Why relief over the Federal Reserve could be short-lived

E-commerce stocks also dropped precipitously after reporting weak earnings for the first quarter of the year. Etsy fell by nearly 17% and eBay dropped by about 12%.

New economic data, meanwhile, showed that labor productivity dropped by 7.5% in the first quarter of 2022, its fastest decline since 1947.

Posted in: News BusinessTagged : ""Succeeded His Business"",2 Of Cups Business,525 Business 5 Bankruptcies,Accounting Business Letter To Client,Bracken Business Communications Clinic,Business Account No Deposit,Business Administration Fafsa,Business Balance Sheet Explained,Business Card,Business Card Printing La Plata,Business Card To Secret Website,Business Cards Media Bar,Business Central Png,Business Coaching Site Cloudfront,Business Contract Lawyer 47201,Business Marketing Pearson Quizlet,Business Milleage Leager 18,Business Mobile Broadand Plans,Business Plan For Supplement Company,Business Plan Loan Originayor,Disrupting Digital Business Harvard,Ffiec Business Continuity Templates,Gauge Ear Piercing Business,Good Openings For Business Letters,Holton Investment Business,Indiana Wesleyan University Business,Indianapolis Business Times,List Business In Search Engines,List My Business Yahoo,Lunch Susbcription Business Model,Morgan Hill Business Liocense Renewal,Nee Small Business Bill Signed,Negotiating Business Acquisitions Practical Law,Networking Trends Small Business,New Business In Shorewood Il,School Business Officer Being Unethical,Small Business Administration Mass,Small Business Comunity,Small Business Corporation South Africa,Small Business Depew Llc,Small Business Medical Offices Chicago,Small Business Office Lakewood Nj,Small Business Plans Verizon,Small Business Storage Array,Small Business Sucess Stories,South Florida Business Journal Twitter,Torrington Ct,United Business Tech Response Sla,United Domestic Business Food,Video Business Woman Bukkake,Ways To Improve Business Technologyreddit

Post navigation

Are the Pros Worth the Cons? – Business Tips & Advice
What Is SEARCH ENGINE MARKETING Advertising?

Categories

  • Business Analysis
  • Business Banking
  • Business Management
  • General
  • Insurance
  • Investment
  • News Business

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • March 2020
  • January 2019
  • November 2018

Recent Posts

  • How (and Why) to Do Domain Background Check with Bill Hartzer
  • North Kitsap man’s $60K investment account drained in fraud, leaving only 32 cents behind
  • You Can Get Travel Insurance Without Paying for It Out-Of-Pocket
  • Digital diabetes management: With insights at home and abroad, where should today’s business model head?
  • Capital One Spark Business Checking Review 2022

Visit Now

Car Washer

BL

LP

TL

Intellifluence Trusted Blogger

promo toyota malang

water damage restoration las vegas

hollywoodstarshoney.com All rights reserved
Theme: Royal Magazine by ThemeinWP
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT