{"id":26868,"date":"2022-05-05T20:32:04","date_gmt":"2022-05-05T20:32:04","guid":{"rendered":"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/"},"modified":"2022-05-05T20:32:04","modified_gmt":"2022-05-05T20:32:04","slug":"us-markets-see-worst-losses-since-2020-after-rate-rise","status":"publish","type":"post","link":"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/","title":{"rendered":"US markets see worst losses since 2020 after rate rise"},"content":{"rendered":"
\n

US financial markets plummeted a day after the country’s central bank made the biggest rate hike in 22 years.<\/b><\/p>\n<\/div>\n

\n

The sell-off came as concerns mounted over how rising prices — and the Federal Reserve’s moves to stem them — will affect economic growth.<\/p>\n<\/div>\n

\n

Technology stocks led the declines, which were among the sharpest since 2020.<\/p>\n<\/div>\n

\n

The Dow index, which includes mainstays like Apple and Nike, slipped more than 1,000 points to end 3.1% lower.<\/p>\n<\/div>\n

\n

The broader S&P 500 fell 3.6%, while the tech-heavy Nasdaq fell nearly 5%.<\/p>\n<\/div>\n

\n

The losses erased gains markets enjoyed on Wednesday after the Federal Reserve announced it would raise interest rates by half a percentage point to between 0.75% and 1%.<\/p>\n<\/div>\n

\n

This move, which will make borrowing more expensive, was expected. <\/p>\n<\/div>\n

\n

Analysts said investors were relieved the bank hadn’t moved more aggressively, and Federal Reserve Chair Jerome Powell said a major rate hike was not “actively considered.”<\/p>\n<\/div>\n

\n

But Thursday’s losses suggested concerns remain over whether the Fed will be able to slow economic activity enough to cool price hikes without plunging the economy into a recession – defined as the economy dividing into two straight quarters is shrinking.<\/p>\n<\/div>\n

\n

Rising prices are also being driven by factors beyond the central bank’s control, such as rising energy prices due to the war in Ukraine.<\/p>\n<\/div>\n

\n

“Yesterday’s [markets] Blast higher was completely weird. It was ridiculous. His comments did not warrant the move we saw,” said Kenny Polcari, managing partner at Kace Capital Advisors.<\/p>\n<\/div>\n

\n

While Mr Powell said he is confident the US economy is strong enough to handle the impact of higher interest rates, investors are concerned that the rising cost of living will start to hit US households and slow consumer spending.<\/p>\n<\/div>\n

\n

In recent weeks, big companies like Amazon have warned of a slowdown in growth. Government figures this month showed that the US economy contracted 1.4% in the first three months of the year.<\/p>\n<\/div>\n

\n
\n
    \n
  • Warning of economic downturn with rising interest rates<\/li>\n
  • The US makes the largest interest rate hike in 22 years<\/li>\n
  • Amazon sell-off ends a somber month for US stocks<\/li>\n<\/ul>\n<\/div>\n<\/div>\n
    \n

    Stocks of companies that rely on consumer spending were hit particularly hard on Thursday. <\/p>\n<\/div>\n

    \n

    On the Dow, Nike was down 5.9%, Apple was down 5.5% and Home Depot was down 5.1%.<\/p>\n<\/div>\n

    \n

    eBay plunged more than 11%, while Etsy slumped nearly 17% on a daily basis after both companies forecast slower growth than analysts had expected.<\/p>\n<\/div>\n

    \n

    Bucking the broader market trend, social media platform Twitter rose 2.5% as billionaire Elon Musk lined up investors to fund his acquisition.<\/p>\n<\/div>\n

    \n

    But shares of Musk’s electric-car company Tesla plummeted more than 8%.<\/p>\n<\/div>\n

    \n

    The sell-off deepened the year-to-date downturn in US financial markets. The Dow is down nearly 10% since January, while the S&P 500 is down 13% and the Nasdaq is down 22%.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    US financial markets plummeted a day after the country’s central bank made the biggest rate hike in 22 years. The sell-off came as concerns mounted over how rising prices — and the Federal Reserve’s moves to stem them — will affect economic growth. Technology stocks led the declines, which were among the sharpest since 2020. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[45],"tags":[],"class_list":["post-26868","post","type-post","status-publish","format-standard","hentry","category-business"],"yoast_head":"\nUS markets see worst losses since 2020 after rate rise - Tahrir News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US markets see worst losses since 2020 after rate rise\" \/>\n<meta property=\"og:description\" content=\"US financial markets plummeted a day after the country’s central bank made the biggest rate hike in 22 years. The sell-off came as concerns mounted over how rising prices — and the Federal Reserve’s moves to stem them — will affect economic growth. Technology stocks led the declines, which were among the sharpest since 2020. […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/\" \/>\n<meta property=\"og:site_name\" content=\"Tahrir News\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-05T20:32:04+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/tahrir2day.com\/news\/#website\",\"url\":\"https:\/\/tahrir2day.com\/news\/\",\"name\":\"Tahrir News\",\"description\":\"News all over the world\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/tahrir2day.com\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/#webpage\",\"url\":\"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/\",\"name\":\"US markets see worst losses since 2020 after rate rise - Tahrir News\",\"isPartOf\":{\"@id\":\"https:\/\/tahrir2day.com\/news\/#website\"},\"datePublished\":\"2022-05-05T20:32:04+00:00\",\"dateModified\":\"2022-05-05T20:32:04+00:00\",\"author\":{\"@id\":\"https:\/\/tahrir2day.com\/news\/#\/schema\/person\/5eb9492fbc67154812b39589e826b6e4\"},\"breadcrumb\":{\"@id\":\"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/tahrir2day.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business\",\"item\":\"https:\/\/tahrir2day.com\/news\/category\/business\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"US markets see worst losses since 2020 after rate rise\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/tahrir2day.com\/news\/#\/schema\/person\/5eb9492fbc67154812b39589e826b6e4\",\"name\":\"megahed\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/tahrir2day.com\/news\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/0ee3294b28670178246ce92a6679bf959bc435d2fcd9cb9ab078702487c106df?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/0ee3294b28670178246ce92a6679bf959bc435d2fcd9cb9ab078702487c106df?s=96&d=mm&r=g\",\"caption\":\"megahed\"},\"sameAs\":[\"https:\/\/tahrir2day.com\/news\"]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"US markets see worst losses since 2020 after rate rise - Tahrir News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/","og_locale":"en_US","og_type":"article","og_title":"US markets see worst losses since 2020 after rate rise","og_description":"US financial markets plummeted a day after the country’s central bank made the biggest rate hike in 22 years. The sell-off came as concerns mounted over how rising prices — and the Federal Reserve’s moves to stem them — will affect economic growth. Technology stocks led the declines, which were among the sharpest since 2020. […]","og_url":"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/","og_site_name":"Tahrir News","article_published_time":"2022-05-05T20:32:04+00:00","twitter_card":"summary_large_image","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/tahrir2day.com\/news\/#website","url":"https:\/\/tahrir2day.com\/news\/","name":"Tahrir News","description":"News all over the world","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/tahrir2day.com\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/#webpage","url":"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/","name":"US markets see worst losses since 2020 after rate rise - Tahrir News","isPartOf":{"@id":"https:\/\/tahrir2day.com\/news\/#website"},"datePublished":"2022-05-05T20:32:04+00:00","dateModified":"2022-05-05T20:32:04+00:00","author":{"@id":"https:\/\/tahrir2day.com\/news\/#\/schema\/person\/5eb9492fbc67154812b39589e826b6e4"},"breadcrumb":{"@id":"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/tahrir2day.com\/news\/2022\/05\/05\/us-markets-see-worst-losses-since-2020-after-rate-rise\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/tahrir2day.com\/news\/"},{"@type":"ListItem","position":2,"name":"Business","item":"https:\/\/tahrir2day.com\/news\/category\/business\/"},{"@type":"ListItem","position":3,"name":"US markets see worst losses since 2020 after rate rise"}]},{"@type":"Person","@id":"https:\/\/tahrir2day.com\/news\/#\/schema\/person\/5eb9492fbc67154812b39589e826b6e4","name":"megahed","image":{"@type":"ImageObject","@id":"https:\/\/tahrir2day.com\/news\/#personlogo","inLanguage":"en-US","url":"https:\/\/secure.gravatar.com\/avatar\/0ee3294b28670178246ce92a6679bf959bc435d2fcd9cb9ab078702487c106df?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/0ee3294b28670178246ce92a6679bf959bc435d2fcd9cb9ab078702487c106df?s=96&d=mm&r=g","caption":"megahed"},"sameAs":["https:\/\/tahrir2day.com\/news"]}]}},"_links":{"self":[{"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/posts\/26868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/comments?post=26868"}],"version-history":[{"count":0,"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/posts\/26868\/revisions"}],"wp:attachment":[{"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/media?parent=26868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/categories?post=26868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/tags?post=26868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}