• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Monday, June 23, 2025
  • Login
  • Register
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home Business

Wall Street tumbled on Friday as concerns over interest rates increase

by Ayush Bansal
April 23, 2022
in Business, Markets, News
Reading Time: 3 mins read
0
STOCK MARKET COLLAPSES AS THE WORLD IS COLLAPSING
TwitterWhatsappLinkedin
NYSE to partially reopen trading floor after Memorial Day | AP News
Image: AP News

Stocks tumbled on Wall Street Friday, leaving the S&P 500 with its biggest one-day loss in almost seven weeks, as worries deepen about a surge in interest rates and the U.S. central bank’s efforts to fight inflation.

You might also like

Tesla Shifts Gears: India’s First Tesla Showrooms Open in Mumbai and Delhi

Rohit Vishwakarma Joins NDTV India as Managing Editor

Why Smart Entrepreneurs Are Betting Big on Shopify Store Management Services

The Dow fell 981.36 points, or 2.8%, to 33,811.40. The S&P 500 was 2.8% lower at 4,271.78, for its worst day since March. The Nasdaq Composite declined by 2.6% to 12,839.29. Friday’s loss was the biggest for the Dow since Oct. 28, 2020.

UnitedHealth fell more than 3%, shaving more than 100 points off the Dow. Caterpillar also took out nearly 100 points from the 30-stock average, dropping 6.6% on the day. Goldman Sachs, Home Depot, and Visa were also big downside contributors.

Those losses put the Dow down 1.9% for the week, its fourth straight weekly decline and its ninth losing week of the last 11. The S&P 500 posted a 2.8% weekly loss, marking its third straight one-week decline. The Nasdaq was the laggard this week, losing 3.8%.

Fed Outcomes

Traders bet Fed to go bigger, but Mester says not so fast | Reuters
Image: Reuters

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. Such corporate optimism has helped stocks remain relatively resilient, even as worries swirl about the highest inflation in decades, the war in Ukraine, and the coronavirus.

But markets buckled as the chair of the Federal Reserve indicated the central bank may indeed hike short-term interest rates by double the usual amount at upcoming meetings, starting in two weeks.

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. It’s also preparing other moves to put upward pressure on longer-term rates.

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. But they can also trigger a recession, all while putting downward pressure on most kinds of investments.

Earning Effect

Meanwhile, the latest earnings forecasts to jolt investors came from healthcare, with HCA Healthcare (HCA.N) and Intuitive Surgical Inc (ISRG.O) the worst performers on the S&P 500.

HCA slumped 21.8% after reporting a downbeat profit view, while other hospital operators felt the contagion: Tenet Healthcare (THC.N), Community Health Systems (CYH.N), and Universal Health Services (UHS.N)all tumbled between 14% and 17.9%.

All 11 major S&P 500 sectors were down, although the 3.6% slip by healthcare was outdone by materials, which was off 3.7%.

Materials (.SPLRCM) was weighed down by Nucor Corp (NUE.N) – down 8.3% after hitting a record high after posting earnings on Thursday – and Freeport-McMoRan Inc (FCX.N), which slipped 6.8% as investors fretted over how interest rate hikes would impact copper miners.

Other Actions

A preliminary report on Friday indicated the U.S. services industry’s growth is slowing, hurt in particular by surging costs for fuel, wages, and other expenses.

Treasury yields have soared as investors prepare for a more aggressive Fed, and stocks have often moved in the opposite direction of them. The yield on the 10-year Treasury slipped to 2.90% from 2.91% late Thursday but remains close to its highest level since 2018. It began the year at 1.51%.

The two-year Treasury yield, which moves more on expectations for Fed action on short-term rates, has zoomed even more. It was at 2.69% late Friday after more than tripling from 0.73% at the start of the year.

Markets around the world are feeling similar pressure on rates and inflation, particularly in Europe as the war in Ukraine pushes up oil, gas, and food costs.

 

Tags: dow jonesMarketS&P 500StocksWall Street
Tweet54SendShare15
Previous Post

Michael Saylor is Secretly Selling His Bitcoin and Doesn’t Want You To Know

Next Post

Smartphone Industry Affected by Supply Chain Issues

Ayush Bansal

Recommended For You

Tesla Shifts Gears: India’s First Tesla Showrooms Open in Mumbai and Delhi

by Ishaan Negi
June 23, 2025
0
Report suggests Musk cancelled India trip to secure fully self-driving car technology deal in China

After years of speculation and stalled negotiations, Tesla is finally entering the Indian market. In this article, we’ll explore how Tesla plans to make its mark in one...

Read more

Rohit Vishwakarma Joins NDTV India as Managing Editor

by Ishaan Negi
June 23, 2025
0
Rohit Vishwakarma Joins NDTV India as Managing Editor

Appointing Rohit Vishwakarma as its new Managing Editor is a calculated move by NDTV India that demonstrates its dedication to digital transformation and reliable journalism. Vishwakarma has more...

Read more

Why Smart Entrepreneurs Are Betting Big on Shopify Store Management Services

by Rohan Mathawan
June 23, 2025
0
Why Smart Entrepreneurs Are Betting Big on Shopify Store Management Services

Operating a Shopify store can be a dream come true initially — clean themes, drag-and-drop editors, and scores of apps that are supposed to deliver. However, once the...

Read more
Next Post
Budget smartphones by Stuff

Smartphone Industry Affected by Supply Chain Issues

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook flipkart funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?