{"id":436078,"date":"2022-04-22T22:17:35","date_gmt":"2022-04-22T19:17:35","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/dow-plunges-800-points-as-fed-signals-steeper-rate-hikes-to-combat-inflation\/"},"modified":"2022-04-22T22:17:35","modified_gmt":"2022-04-22T19:17:35","slug":"dow-plunges-800-points-as-fed-signals-steeper-rate-hikes-to-combat-inflation","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/dow-plunges-800-points-as-fed-signals-steeper-rate-hikes-to-combat-inflation\/","title":{"rendered":"#Dow plunges 800 points as Fed signals steeper rate hikes to combat inflation"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ccbf598757\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ccbf598757\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/dow-plunges-800-points-as-fed-signals-steeper-rate-hikes-to-combat-inflation\/#%E2%80%9CDow_plunges_800_points_as_Fed_signals_steeper_rate_hikes_to_combat_inflation%E2%80%9D\" >&#8220;Dow plunges 800 points as Fed signals steeper rate hikes to combat inflation&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CDow_plunges_800_points_as_Fed_signals_steeper_rate_hikes_to_combat_inflation%E2%80%9D\"><\/span>&#8220;Dow plunges 800 points as Fed signals steeper rate hikes to combat inflation&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>The Dow suffered its worst one-day loss since October 2020 as investors weighed the possibility that the Federal Reserve could hike interest rates more than expected and digested days of dis<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointing earnings results.<\/p>\n<p>The S&amp;P 500 fell 2.8%, closing out a third straight losing week. The Dow Jones Industrial Average was off 981 points, or 2.8%, at 33,811.40. The Nasdaq composite slid 2.6%.<\/p>\n<p>The selloff meant that the Dow recorded its fourth consecutive week of declines. The S&amp;P has been on a downward keel for three consecutive weeks.<\/p>\n<p>A day earlier, Wall Street seemed set for healthy gains for the week after American Airlines, Tesla and other big companies reported strong profits or better forecasts for future earnings than analysts expected. <\/p>\n<p>Such corporate optimism has helped stocks remain relatively resilient, even as worries swirl about the highest inflation in decades,\u00a0the war in Ukraine\u00a0and the\u00a0coronavirus.<strong><br \/><\/strong>Markets buckled as the\u00a0chair of the Federal Reserve indicated\u00a0the central bank may indeed hike short-term interest rates by double the usual amount at upcoming meetings, starting in two weeks.<\/p>\n<p>On Thursday, Federal Reserve Chairman Jerome Powell said it was \u201cabsolutely essential\u201d for the central bank to tame surging inflation \u2013 indicating a half-percentage-point hike could occur in May. The Fed <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly hikes rates by a quarter-percentage-point at a time.<\/p>\n<p>Earlier in the week, the Fed\u2019s James Bullard said he wouldn\u2019t rule out the possibility of an even larger hike.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/DOW-April22-V2.jpg?w=1024\" alt=\"dow plunges\" class=\"wp-image-22007211\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/DOW-April22-V2.jpg?quality=75&amp;strip=all&amp;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/DOW-April22-V2.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/DOW-April22-V2.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The Dow suffered its worst one-day loss since October 2020 on April 22, 2022. <\/figcaption><\/figure>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/brokers-nyse-02.jpg?w=1024\" alt=\"The sell-off is stoking fears that the US could be on the verge of a recession.\" class=\"wp-image-22004408\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/brokers-nyse-02.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/brokers-nyse-02.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/brokers-nyse-02.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The US has been dealing with inflation that is the highest in decades. <\/figcaption><figcaption><span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>\u201cAfter years of being very accommodative, the Fed has made it clear that policy is going to be tighter for the foreseeable future,\u201d Brian Price, the head of investment management at Massachusett-based Commonwealth Financial Network, told The Post.<\/p>\n<p>\u201cTheir hawkish stance is giving investors pause as many are left to evaluate the impact on profit margins and equity multiples moving forward.\u201d<\/p>\n<p>The Fed has already raised its key overnight rate once, the first such increase since 2018, as it aggressively removes the tremendous aid thrown at the economy through the pandemic. <\/p>\n<p>It\u2019s also preparing other moves to put upward pressure on longer-term rates.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/brokers-nyse-04.jpg?w=1024\" alt=\"This is shaping up to be the fourth consecutive week that the Dow has fallen.\" class=\"wp-image-22004412\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/brokers-nyse-04.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/brokers-nyse-04.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/brokers-nyse-04.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>This is shaping up to be the fourth consecutive week that the Dow has fallen.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>By making it more expensive for businesses and households to borrow, the higher rates are meant to slow the economy, which should hopefully halt the worst inflation in generations. <\/p>\n<p>But they can also trigger a recession, all while putting downward pressure on most kinds of investments.<\/p>\n<p>\u201cWe\u2019re still very early into earnings season but higher costs are already denting profit margins and there doesn\u2019t appear to be any material relief in sight,\u201d Price said. <\/p>\n<p>\u201cIt now appears likely that the Fed is ready to raise interest rates by 50 basis points at their next meeting and the market may have been spooked by the mere mention of 75 basis points by the Fed\u2019s James Bullard recently.\u201d<\/p>\n<p>Tech stocks sold off this week after Netflix, a longtime Wall Street darling, spooked investors by revealing it lost 600,000 US subscribers last quarter.<\/p>\n<p>Analysts will be watching closely when several blue-chip tech firms, including Apple, Amazon and Microsoft, report earnings next week.<\/p>\n<p><em>With Post Wires<\/em>\n                        <\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/04\/22\/dow-plunges-800-points-as-fed-signals-steeper-rate-hikes-to-combat-inflation\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Dow plunges 800 points as Fed signals steeper rate hikes to combat inflation&#8221; The Dow suffered its worst one-day loss since October 2020 as investors weighed the possibility that the Federal Reserve could hike interest rates more than expected and digested days of disappointing earnings results. The S&amp;P 500 fell 2.8%, closing out a third&#8230;<\/p>\n","protected":false},"author":1,"featured_media":436079,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/04\/stocks-dow.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[128343,73977,5069,70550,70551,70552,72332,91261,70360],"class_list":["post-436078","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-4-22-22","tag-dow-jones-industrial-average","tag-economy","tag-federal-reserve","tag-inflation","tag-interest-rates","tag-nasdaq","tag-recession","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/436078","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=436078"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/436078\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/436079"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=436078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=436078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=436078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}