NEW YORK (AFP) – Wall Street stocks fell again on Thursday amid growing recession fears as more central banks raised interest rates and following the Federal Reserve’s latest aggressive move to counter surging inflation.
The Bank of England on Thursday announced its second consecutive half-point rate increase and warned the British economy was slipping into recession. Others to tighten the screws include the European, Swiss and Norwegian central banks.
Losses on New York followed drops of nearly 2 per cent Wednesday after the Fed announcement of another super-sized rate hike, and came on the heels of declines earlier Thursday in most overseas bourses.
“Global equities are struggling as the world anticipates surging rates will trigger a much sooner and possibly severe global recession,” said Oanda’s Edward Moya.
The tech-rich Nasdaq Composite Index led the major indices lower, falling 1.4 per cent to 11,066.81.
The Dow Jones Industrial Average shed 0.4 per cent to 30,076.68, while the broad-based S&P 500 declined 0.8 per cent to 3,757.99.
Among individual companies, Tesla shares fell 4.1 per cent as it recalled 1.1 million vehicles due to a defect with the automatic window system that poses risks of pinching a driver’s finger.
Target dropped 3.8 per cent after the big-box retailer announced plans to hire up to 100,000 seasonal workers and begin holiday promotions in early October.
FedEx climbed 0.8 per cent as it announced plans to cut up to US$2.7 billion (S$3.8 billion) in spending in the wake of a slowdown in demand.