- US stocks fell sharply Thursday, with the Dow closing more than 700 points lower.
- Investors weighed more rate hikes from the Fed and more hawkishness than they hoped for in 2023.
US stocks saw steep losses on Thursday, with investors weighing rate hikes from the Federal Reserve and the European Central Bank.
Wednesday's 50 basis-point rate increase and the realization that the US central bank would maintain a hawkish stance well into 2023 appeared to flow through the market during Thursday's session. After a muted response to the Fed decision a day earlier, investors sold stocks as they prepared for the possibility that higher rates may spark a recession.
Meanwhile, both the European Central Bank and the Bank of England both raised interest rates by 50 basis points, with ECB chair Christine Lagarde cautioning that rates may be staying higher for longer.
Here's where US indexes stood shortly after the 4:30 p.m. closing bell on Thursday:
- S&P 500: 3,896.10, down 2.48%
- Dow Jones Industrial Average: 33,202.81, down 2.25% (763.54 points)
- Nasdaq Composite: 10,810.53, down 3.23%
Here's what else is going on today:
- Binance chief executive Changpeng Zhao says all customer assets are backed one-to-one and slammed fractional reserves.
- Tesla's third-largest individual shareholder thinks the electric car company needs a new CEO as Elon Musk focuses on Twitter.
- Jeremy Siegel says he believes the Fed has been hypocritical on inflation and foresees interest rate cuts next year.
In commodities, bonds, and crypto:
- Oil prices declined, with West Texas Intermediate falling 1.39% to $76.21 a barrel. Brent crude, the international benchmark, shed 1.71% to $81.28 a barrel.
- Gold declined 1.47% to $1,780.74 per ounce.
- The 10-year Treasury yield fell 5.1 basis points to 3.45%.
- Bitcoin gained 0.26% to $17,448.55.