Day after Fed rate hike, US stocks plunge amid recession fears

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A day after the Federal Reserve hiked interest rates to a historic high, US stocks plunged as more central banks around the world hiked interest rates to curb inflation.

The Dow Jones Industrial Average sank over 741 points to end 2.4 points down at 29,927.07 closing below the 30k mark for the first time since January 2021.

Also Read: US Federal Reserve announces historic interest rate hike; Wall Street stocks surge

The S&P 500 also dived falling 3.3 per cent to close at 3,666.78 and Nasdaq fell  4.1 per cent to 10,646.10. The US Federal Reserve on Thursday had announced 75 basis point rate hike which was the highest since 1994.

Watch: US Fed announces highest interest hike since 1994

However, central banks in UK and Switzerland also hiked rates to curb rising inflation reigniting recession fears. The Swiss National Bank raised interest rates by 50 basis points for the first time in 15 years and the Bank of England raised rates for the fifth time since December by 25 basis points.

UK is currently battling the highest inflation in the last 40 years at nine per cent as the markets in the UK continued to be nervous with London’s benchmark FTSE 100 index closing 3.1 per cent down.

The Bank of England indicated that the UK economy will contract  0.3 per cent in the second quarter after showing growth in the first quarter.

(With inputs from Agencies)

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