US stocks fall on recession-linked concerns

US stocks fell on Thursday, for the third successive day after the Fed delivered another aggressive 75 base point rate hike. The monetary policy decision, originally meant to encounter hot inflation, triggered anew fears that the US economy could fall into a recession.

The Dow Jones Industrial Average was last down 91 points, or 0.3%. The S&P 500 traded 0.74% lower, and the Nasdaq Composite slid 1.4%. Thursday’s market moves followed a down session as investors evaluated the Fed’s 75 basis point rate hike. The Dow and S&P slumped to levels not seen since June 17 and June 30, respectively, while the Nasdaq hit its lowest level since July 1.


Growth tech stocks and semiconductors took a leg lower amid fears of slowing economic growth. Industrials and consumer discretionary were the worst-performing S&P 500 sectors, losing at least 1% each.

Policymakers also pledged to raise rates as high as 4.6% in 2023 before pulling back in the fight against inflation, spurring fears on Wall Street of a slowdown ahead.

The Fed has paved the way for much of the world to continue with aggressive rate hikes, and that is going to lead to a global recession, and how severe it is will be determined on how long it takes inflation to come down.