Current u.s stock market news updates:

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Stocks plummet, Dow drops to 2022 low (5)

 As Fed and growth concerns shake markets, stocks plummet, Dow hits 2022 low, and oil plunges.

U.S. equities plunged on Friday, capping a choppy week as concerns that hasty central bank tightening might lead to a recession wrecked the financial markets.

Current u.s stock market news updates:

The benchmark S&P 500 fell 1.7%, approaching a new bottom for 2022. The Dow Jones Industrial Average dropped 486 points, or 1.6%, ending the day at a 2022 low and briefly entering bear market territory at one point. Additionally, the heavily tech-focused Nasdaq Composite fell 1.8%. Wall Street’s “fear gauge,” the CBOE Volatility Index (VIX), teetered above 30.

u.s stock market

The 2-year U.S. Treasury note surged to a 15-year high of 4.2%, and the 10-year U.S. Treasury note held near 3.7%, the highest level since 2010. The price of crude oil plunged on the commodity markets, with West Texas Intermediate (WTI) futures ending over 6% down at $78.74 per barrel.

The actions come after the Federal Reserve raised interest rates for the third time in a row earlier this week by 75 basis points, and Chair Jerome Powell suggested in hawkish remarks that policymakers were willing to accept economic suffering in exchange for restoring price stability. In recent days, central banks all across the world have adopted a similar strategy.

Current u.s stock market news updates:

The S&P 500 index year-end 2022 estimate set by Goldman Sachs has been reduced from 4,300 to 3,600, a decrease of around 16%.

‘The expected path of interest rates is now higher than we previously believed, which tilts the distribution of equity market outcomes below our prior projection,’ wrote David Kostin of Goldman in a note.

u.s stock market

The majority of stock investors, according to our client conversations, believe that a hard landing scenario is unavoidable. As a result, they are concentrating on the timing, size, and length of a prospective recession as well as investment strategies for that outlook.

In corporate news, Costco (COST) was among Friday’s top performers after the bulk retailer posted fiscal fourth-quarter earnings and revenue that topped Wall Street projections, but warned that inflationary pressures were putting pressure on profit margins as consumer habits changed. Stocks fell 4.3% on Friday.

Current u.s stock market news updates:

One week after receiving a dismal pre-earnings report that saw its stock down 20%, FedEx (FDX) announced cost-cutting initiatives and rate increases, which sent its shares sliding 3.3%.

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