Dow falls 700 points, tumbling below 30,000 to the lowest level in more than a year
The Dow Jones Industrial average tumbled below the key 30,000 level on Thursday as investors worried the Federal Reserve’s more aggressive approach toward
The Dow Jones Industrial average tumbled below the key 30,000 level on Thursday as investors worried the Federal Reserve’s more aggressive approach toward inflation would bring the economy into a recession.
The Dow had rallied on Wednesday after the Fed raised rates by the most since 1994, but reversed those gains and then some on Thursday, tumbling to the lowest level since January 2021.
The Dow Jones Industrial Average dropped 2.4%, or 730 points, and is down more than 4.4% on the week. The S&P 500 slipped 2.7% while the Nasdaq Composite slid 2.8%.
“It’s about time we exit this artificial world of predictable massive liquidity injections where everybody gets used to zero interest rates, where we do silly things whether it’s investing in parts of the market we shouldn’t be investing in or investing in the economy in ways that don’t make sense,” Allianz chief investment advisor Mohamed El-Erian told CNBC’s “Squawk Box” on Thursday. “We are exiting that regime and it’s going to be bumpy.”
Tech shares moved lower after a bounce on Wednesday. Tesla, PayPal, Nvidia, Amazon and Netflix all slipped more than 3%. Travel stocks including United, Delta and Carnival also took a leg lower along with financial closely connected to economic growth.