Wall Street’s major indexes tumbled more than 1% on Tuesday, as investors positioned themselves for fresh economic forecasts and another big interest rate hike by the Federal Reserve this week to contain the highest inflation in decades.
All 11 major S&P sectors were down at the open, led by declines of 1.6% and 2.1% in real estate and materials, respectively.
Interest-sensitive growth stocks such as Meta Platforms Inc, Tesla Inc, Microsoft Corp, Nvidia Corp, Alphabet Inc and Amazon.com Inc were down between 0.9% and 1.5% as Treasuries yields rose by anticipation of the Fed’s rate hike.
The US central bank is expected to raise interest rates by 75 basis points on Wednesday, with markets also predicting a 19% chance of a 100 basis point increase.
The Fed’s terminal rate is expected to stand at 4.49% in March 2023, according to market estimates.
The benchmark S&P 500 index has lost 19.2% so far this year as investors fear aggressive monetary policy measures could send the US economy into recession, with a recent bad outlook from delivery company FedEx Corp. . and the inversion of the yield curve on Treasuries fueling fears.
At 11:38 (GMT) the S&P 500 index was down 1.18% to 3,853.85 points, while the Dow Jones was down 1.41% to 30,583.58 points. The Nasdaq Composite technology index fell 0.88% to 11,433.94 points.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
