The Fed took a 75-basis point rate hike off the table on Wednesday.
Still, Powell promised to be “highly attentive” to inflation, arguing that bringing it down is “essential.”
The bearish turn from stocks and bonds. Cash may be the safest place for investors as market turmoil continues.
Investor concerns that have triggered a stock market correction in recent months—including inflation, the Russia and Ukraine war, and surging oil prices—continue to plague markets.
On Thursday, the Dow Jones industrial average sank 1,063 points or 3.12%, and the S&P 500 dropped 3.56%, while the tech-heavy Nasdaq fared even worse, tumbling 4.9%.
It was the worst showing for U.S. stocks since the start of the COVID-19 pandemic in March of 2020, when the Dow cratered 1,191 points in its largest drop since the financial crisis of 2007 and 2008.
Big tech names like Amazon and Apple were under particular pressure on Thursday, sliding 7.5% and 5.5%, respectively.
E-commerce and retail companies also experienced sharp declines. Shares of eBay and Wayfair fell over 12% and 25%, respectively, while Etsy dropped 16.8%.
The bond market also continued to sell-off on Thursday, pushing U.S. 10-year Treasury yields to over 3% for the first time since 2018.
Bitcoin and other top cryptocurrencies also experienced a sharp selloff as the sector continues to trade in lockstep with stocks. The world’s leading digital asset sank 8.7% as the total cryptocurrency market cap fell roughly 7.7% to below $1.7 trillion.
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Edited by：【Himalaya London Club UK】