Yesterday's rally on Wall Street has vanished in a sea of red, with investors taking flight as both the UK and Switzerland raise official interest rates.
US stocks and returns on bonds have plunged as investors' fears about a recession have grown after the biggest interest rate rise by the US central bank in almost three decades.The Dow Jones index lost 2.4pc to 29,927, the S&P 500 lost 3.3pc to 3,667, and the Nasdaq Composite fell 4.1pc to 10,646
A day after rallying as the US Federal Reserve raised the federal funds rate by 0.75 per cent, Wall Street was a sea of red with all 11 sectors on the S&P 500 falling, led down by energy stocks.Interest rate rises in the United Kingdom and Switzerland reignited fears that attempts by central banks to cool roaring inflation could see the global economy stumble or cause a recession.
It was the Nasdaq's fifth single-day decline of 4 per cent or more since May with the index in a bear market."That is what people [are] reassessing today — what is the probability of a potential recession and will corporate profits come in where analysts estimate or will those get taken down," said global investment strategist Tom Hainlin at US Bank Wealth Management's Ascent Private Wealth Group.
The benchmark 10-year yield dipped to 3.307 per cent after reaching 3.498 per cent on Tuesday, the highest since April 2011.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX to plunge as ‘hard-landing’ worries slam Wall StreetAustralian shares are set to drop at the open as fast-rising global interest rates heightened recession risks. Nasdaq sheds more than 4 per cent on tech tumble.
Read more »
Red-hot lithium boom pits Wall Street against the wonksThere’s a fight brewing in the lithium market, after a controversial forecast from Goldman Sachs Group analysts set off a backlash among some of the industry’s most prominent experts.
Read more »
US district renames street in front of Saudi embassy after murdered dissident Jamal KhashoggiThe street in front of Saudi Arabia's embassy in Washington has been renamed after Saudi activist and journalist Jamal Khashoggi. The Saudi regime has consistently denied Crown Prince Mohammed Bin Salman was involved in his 2018 death. Read more here:
Read more »
ASX to slip, Wall St rallies before Fed decisionAll eyes are watching for confirmation of a 75 basis point increase from the US central bank. ASX futures lower; Wall St rallies. Bitcoin extends tumble.
Read more »
Councillor’s five-person protest could tear down Queen Street Mall protectionsGreens’ councillor Jonathan Sri wants the Brisbane Supreme Court to assess whether council legislation breaches the Human Rights Act.
Read more »
ASX LIVE: ASX to rise, Wall St rallies on Fed’s resolveAustralian shares are set to open higher, bolstered by a broad rally in New York. Oil, iron ore ease. $A surges 2 per cent. Follow updates here.
Read more »