{"id":442656,"date":"2022-05-05T19:39:46","date_gmt":"2022-05-05T16:39:46","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/dow-falls-1200-points-as-relief-rally-over-fed-plan-fades\/"},"modified":"2022-05-05T19:39:46","modified_gmt":"2022-05-05T16:39:46","slug":"dow-falls-1200-points-as-relief-rally-over-fed-plan-fades","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/dow-falls-1200-points-as-relief-rally-over-fed-plan-fades\/","title":{"rendered":"#Dow falls 1,200 points as &#8216;relief rally&#8217; over Fed plan fades"},"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-6a3a95164df7e\" 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-6a3a95164df7e\" 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-falls-1200-points-as-relief-rally-over-fed-plan-fades\/#%E2%80%9CDow_falls_1200_points_as_%E2%80%98relief_rally_over_Fed_plan_fades%E2%80%9D\" >&#8220;Dow falls 1,200 points as &#8216;relief rally&#8217; over Fed plan fades&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CDow_falls_1200_points_as_%E2%80%98relief_rally_over_Fed_plan_fades%E2%80%9D\"><\/span>&#8220;Dow falls 1,200 points as &#8216;relief rally&#8217; over Fed plan fades&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>Stocks cratered in trading Thursday, logging their worst day since 2020 as Wall Street grew skittish over the Federal Reserve\u2019s high-wire effort to combat inflation without derailing the US economy.<\/p>\n<p>The Dow Jones Industrial Average plunged 1,063.09 points, erasing more than 3% of its value.\u00a0 The tech-heavy Nasdaq index was down 5%, or more than 600 points, while the broad-based S&amp;P 500 was down 3.6% or 153 points.<\/p>\n<p>The brutal selloff occurred just one day after stocks had rallied, with the Dow finishing more than\u00a0900 points higher over the Federal Reserve\u2019s move to\u00a0hike interest rates by a half-percentage point, with Fed Chair Jerome Powell indicated the central bank was not considering an interest rate hike of 75 basis points, or 0.75%.<\/p>\n<p>That relief, however, quickly abated on Thursday, with investors skeptical that the central bank can engineer a \u201csoft landing\u201d for the economy without hurting the labor market or prompting a recession. <\/p>\n<p>\u201cThere\u2019s been a lot of skepticism overall about whether or not [the Fed] can do that. Historically, the odds aren\u2019t in their favor,\u201d said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.<\/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\/05\/NYSE-traders-85.jpg?w=1024\" alt=\"Worried NYSE trader\" class=\"wp-image-22152245\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/NYSE-traders-85.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/NYSE-traders-85.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/NYSE-traders-85.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The selloff came one day after a \u201crelief rally\u201d tied to Fed Chair Jerome Powell\u2019s rate hike remarks.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<aside class=\"single__inline-module alignright\">\n    <\/aside>\n<p>Concerns about the Fed\u2019s difficult task added to existing overhangs on the market, such as renewed COVID-19 lockdowns in China that could further disrupt supply chains and the ongoing Russia-Ukraine war.<\/p>\n<p>Several banks, including Bank of America and Goldman Sachs, have warned of a heightened risk of a recession in the coming months as the Fed moves to address inflation.<\/p>\n<p>And some, including JPMorgan Chase chief Jamie Dimon, have\u00a0argued the central bank waited too long to act.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"683\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Dow-YTD-May5-1.jpg?w=1024\" alt=\"The Dow is down nearly 5,000 points since February.\" class=\"wp-image-22160915\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Dow-YTD-May5-1.jpg?quality=75&amp;strip=all&amp;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Dow-YTD-May5-1.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Dow-YTD-May5-1.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The Dow is down nearly 5,000 points since February.<\/figcaption><\/figure>\n<p>While Powell\u2019s remarks downplaying the likelihood of a larger interest rate hike triggered a \u201crelief rally,\u201d investors \u201cwoke up this morning and said, \u2018We\u2019re no better off than we were when we woke up yesterday,\u2019\u201d according to Jake Dollarhide, CEO of Longbow Asset Management.<\/p>\n<p>\u201cInterest rates are higher, there\u2019s still a war going on in Europe, there\u2019s still global supply chain disruptions \u2014 which is all affecting inflation. The question is, can the Fed bring inflation to a halt without destroying the economy? Right now, there\u2019s a lot of people on the fence,\u201d Dollarhide added.<\/p>\n<p>The high-growth tech sector, seen as particularly vulnerable to rising rates after seeing blockbuster growth during the COVID-19 pandemic, was among the hardest hit, with the S&amp;P 500\u2019s tech sector slumping nearly 6%.<\/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\/05\/NYSE-traders-86.jpg?w=1024\" alt=\"Worried NYSE trader\" class=\"wp-image-22152246\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/NYSE-traders-86.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/NYSE-traders-86.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/NYSE-traders-86.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The tech sector was under intense pressure in trading Thursday.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>Frederick noted that \u201chighly leveraged\u201d growth stocks that flourished as investors poured in money during a period of lenient Fed policy are now faced with the prospect of their debt becoming more expensive in the months ahead.<\/p>\n<p>\u201cHigher interest rates are going to hurt them even further. The future isn\u2019t promising for those that are indebted and have to roll over that debt at an even higher rate next time they have to refinance,\u201d he added.<\/p>\n<p>The Fed\u2019s plan is to slow demand by making it more expensive to borrow money \u2013 a shift that comes after years of relaxed policy during the COVID-19 pandemic.<\/p>\n<p>The CBOE Volatility Index, known as Wall Street\u2019s \u201cfear gauge,\u201d surged 28% to 32.70 points.<\/p>\n<p>Bond yields rose higher, with benchmark 10-year Treasury notes jumping to 3.06% from 2.914% \u2014 the highest level since late 2018. The uptick means mortgage rates will move higher \u2013 raising costs for prospective home buyers.<\/p>\n<p>The \u201cbond move is the bigger story\u201d than volatility in stocks, according to Eric Freedman, chief investment officer at US Bank in Minneapolis.<\/p>\n<p>\u201cThe bond market is normally a haven for investors who want to de-risk portfolios, but with an uncertain Fed, markets are not convinced they have priced in enough hikes,\u201d Freedman said.<\/p>\n<p>Amazon shares traded more than 7% lower. Meta fell 6.8% and <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>le sank more than 5%.<\/p>\n<p>Shares of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> turned 2.7% higher after Elon Musk disclosed he has secured more than $7 billion in funding toward his takeover bid. But Tesla\u2019s stock was trading lower following a report that Musk planned to\u00a0serve as Twitter\u2019s interim CEO\u00a0when the deal closes.<\/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\/05\/05\/dow-falls-1200-points-as-relief-rally-over-fed-plan-fades\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Dow falls 1,200 points as &#8216;relief rally&#8217; over Fed plan fades&#8221; Stocks cratered in trading Thursday, logging their worst day since 2020 as Wall Street grew skittish over the Federal Reserve\u2019s high-wire effort to combat inflation without derailing the US economy. The Dow Jones Industrial Average plunged 1,063.09 points, erasing more than 3% of its&#8230;<\/p>\n","protected":false},"author":1,"featured_media":442657,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Dow-May5-OneDaychart-1.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[128859,73977,70550,70551,73785,72332,91261,80348,70359],"class_list":["post-442656","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-5-5-22","tag-dow-jones-industrial-average","tag-federal-reserve","tag-inflation","tag-markets","tag-nasdaq","tag-recession","tag-sp-500","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/442656","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=442656"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/442656\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/442657"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=442656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=442656"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=442656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}