US stock indexes tumble as Fed's monetary policy tightening fans recession fears
US stock indexes slumped sharply Thursday, following Federal Reserve's biggest interest rate hike since 1994 that heightened recession worries, media reports said.
The Dow had rallied on Wednesday after the Fed's announcement but the gains evaporated as the majority of companies in the S&P 500 pushed lower.
The Dow Jones Industrial Average fell 2.4 percent, or 730 points, falling below the 30,000 mark and to its lowest level in over a year, Reuters reported adding that the S&P 500 slipped 2.7 percent while the Nasdaq Composite slid 2.8 percent.
The severe sell-off was triggered by the Fed's aggressive move that fanned fears of a spate of monetary tightening from central banks across the world that could slow growth globally.
After, the 75-basis-point hike by America's central bank, Switzerland and Britain increased key policy rates.
Among the mega-caps, Apple Inc, Microsoft Corp and Tesla Inc were some of the biggest losers as investors offloaded stakes in so-called growth stocks that pushed much of the stock-market rally in the past two years.
The odds of a recession have become stronger by more than 50 percent, according to Wells Fargo, Reuters reported, adding that Deutsche Bank and Morgan Stanley are the other banks that have warned of rising recession risks.
The Dow on Thursday traded below 30,000 for the first time since January 4, 2021 after first breaking above that level for the first time in November 2020.