Stocks sank dramatically on Thursday following the release of data indicating that November retail sales decreased more than anticipated.
Concerns that the Federal Reserve’s relentless interest rate hikes are pushing the economy into a recession led to a dramatic plunge in stocks on Thursday, following the release of data indicating that November retail sales fell more than expected.
The Dow Jones Industrial Average dropped 764.13 points, or 2.25 percent, to 33,202.22
The Dow Jones Industrial Average dropped 764.13 points, or 2.25 percent, to 33,202.22 on its worst day since September, as chances for a fourth-quarter comeback receded, The S&P 500 fell 2.49 percent to 3,895.75 on December 31, increasing its decrease for the month to approximately 4.5%, The Nasdaq Composite fell 3.23 percent to 10,810.53 as the tech-heavy index increased its 2022 losses to roughly 31 percent.
The decline was widespread, with only 14 S&P 500 firms trading in positive territory.
The sell-off was widespread, with only 14 S&P 500 equities trading in positive territory, Mega-cap tech companies fell, with Apple and Alphabet down more than 4%, and Amazon and Microsoft down more than 3%,Netflix shares slumped 8.6% after a Digi day report suggested the streaming company is promising to reimburse advertisers for missed audience objectives.
The poor retail sales report indicated that inflation is having an impact on consumers.
The poor retail sales report indicated that inflation is having an impact on consumers, according to the Commerce Department, retail sales were down 0.6% in November. This was a larger loss than the 0.3% decrease predicted by the Dow Jones.
The selling began on Wednesday, following the Fed’s latest increase in its overnight lending rate.
The selling began on Wednesday, following the Fed’s latest increase in its overnight lending rate, the central bank also stated that it will continue to raise rates through 2023, with the fed funds rate peaking at a higher-than-expected 5.1%, With Wednesday’s half-point increase, the target range for rates is now 4.25% to 4.5%, the highest in 15 years.
The Dow fell below 34,000 on Wednesday, and the selling accelerated on Thursday.
The Dow fell below 34,000 on Wednesday, and the selling accelerated on Thursday as a result of bad retail sales data, Treasury yields continued to defy the Fed and fall on concerns that the central bank is overreacting, the 10-year yield has dropped below 3.5%.
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