New York: wall Street Shares fell sharply on Thursday after weak retail sales data amid fears that a central bank interest rate hike would fuel a global recession.
Dow Jones Industrial Average Closed at 33,202.22, down 2.3 percent.
The broad-based S&P 500 fell 2.5 percent to 3,896.75, while the tech-rich Nasdaq Composite Index fell 3.2 percent to 10,810.53.
For investors now, “the risk of a hard landing is greater than they thought,” said Carl Helling of LBBW.
“I think the market has discounted a soft landing like a mild recession, but it hasn’t discounted a hard recession,” he said.
US retail sales fell 0.6 percent to $689.4 billion in October to November, a bigger-than-expected drop, as persistently high inflation puts pressure on shoppers during the key holiday season.
federal Reserve Data released on Thursday also showed industrial production contracted 0.2 percent last month, defying analysts’ expectations for growth.
Analysts said the New York Federal Reserve Bank’s Empire survey showed a decline in readings as shipments and new orders worsened.
“Manufacturing in the US is deteriorating as central banks continue to raise rates and the global economy weakens,” said Gurleen Chadha, economist at Oxford Economics.
one day at the latest irrigated Interest rate hike, European Central Bank and Bank of England Central banks were also raising interest rates on Thursday, with both opting for a 50 basis point increase.
While equity market losses were broad-based, big tech companies suffered a particularly brutal session, with Apple shedding 4.7 percent, Facebook parent Meta 4.5 percent and Netflix shedding 8.6 percent.
Dow Jones Industrial Average Closed at 33,202.22, down 2.3 percent.
The broad-based S&P 500 fell 2.5 percent to 3,896.75, while the tech-rich Nasdaq Composite Index fell 3.2 percent to 10,810.53.
For investors now, “the risk of a hard landing is greater than they thought,” said Carl Helling of LBBW.
“I think the market has discounted a soft landing like a mild recession, but it hasn’t discounted a hard recession,” he said.
US retail sales fell 0.6 percent to $689.4 billion in October to November, a bigger-than-expected drop, as persistently high inflation puts pressure on shoppers during the key holiday season.
federal Reserve Data released on Thursday also showed industrial production contracted 0.2 percent last month, defying analysts’ expectations for growth.
Analysts said the New York Federal Reserve Bank’s Empire survey showed a decline in readings as shipments and new orders worsened.
“Manufacturing in the US is deteriorating as central banks continue to raise rates and the global economy weakens,” said Gurleen Chadha, economist at Oxford Economics.
one day at the latest irrigated Interest rate hike, European Central Bank and Bank of England Central banks were also raising interest rates on Thursday, with both opting for a 50 basis point increase.
While equity market losses were broad-based, big tech companies suffered a particularly brutal session, with Apple shedding 4.7 percent, Facebook parent Meta 4.5 percent and Netflix shedding 8.6 percent.