Stocks slump in early trading ahead of expected Fed rate hike

US stocks fell in early trading on Tuesday, a day ahead of an expected Federal Reserve rate hike.

The Dow Jones Industrial Average plunged 387.21 points, or 1.25%, to 30,632.47 an hour after trading opened at 9:30 a.m. ET.

The S&P 500 fell 48.61 points, or 1.25%, to 3,851.28 and the Nasdaq Composite fell 109.56 points, or 0.95%, to 11,433.76.

Investor fears of inflation and economic recession have prompted widespread selling in recent weeks. The Fed is expected to announce a 75 basis point rate hike on Wednesday.

“Elevated fears of recession risk helped keep US interest rates inverted from early 2023 through early 2026 and may explain why equity volatility is higher than the macro landscape at large would predict,” wrote Dominic Wilson of Goldman Sachs in a note to customers Tuesday. “Nevertheless, markets still need to adjust significantly further if the more restrictive view of the labor market is correct.”

https://www.ibtimes.com.au/wall-street-today-stock-tumble-early-trading-ahead-expected-fed-rate-hike-1838563?utm_source=Public&utm_medium=Feed&utm_campaign=Distribution Stocks slump in early trading ahead of expected Fed rate hike

Fry Electronics Team

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