It didn’t take long for the bears to come off their one-day break. After surging Wednesday, the stock market indexes went right back to heavy losses, as the leading energy sector saw some of the worst action.
Indexes gapped down at the open and made new lows for the year. At 10:08 a.m. ET, the Nasdaq composite was down 3.6%, the S&P 500 3% and the Dow Jones Industrial Average 2.4%.
Stock Market Decliners Far Outweigh Gainers
Volume rose on the NYSE and Nasdaq compared with the same time on Wednesday. Decliners led advancers by an 11-to-2 ratio on the Nasdaq and by abut 15-to-1 on the NYSE.
The stock market Wednesday jumped after the Federal Reserve, as expected, raised the benchmark interest rate by three-quarters of a point. It was the largest increase since 1994, and showed the Fed is not holding back in trying to put down 40-year high inflation.
U.S. Stock Market Today Overview
Last Update: 10:04 AM ET 6/16/2022
The central bank continues to also cut its balance sheet, which is another form of tightening. Wednesday’s move raised the overnight interbank lending rate to a target range of 1.5%-1.75%. Policymakers now expect it to climb to 3.8% this year.
Earlier today, the Bank of England raised its key interest rate by a quarter percentage point for the fifth straight time. The bank said larger increases may be needed.
The London FTSE 100 index plunged 2.7% in afternoon trading. The Paris CAC 40 lost 2.2%, and the German DAX index was down 2.8%.
In Asia, the Tokyo Nikkei fell 0.4%, the Shanghai Composite fell 0.6% and the Hong Kong Hang Seng lost 2.2%.
Jobless claims eased to 229,000 from a revised 232,000 the previous week. The Econoday survey of economists had expected 220,000 claims. The four-week…
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