Dow drops 1,100 points as investors digest Fed interest rate hike
CBSN
Stocks are plummeting on Wall Street, erasing a rally from a day earlier, as markets assess the fallout from the Federal Reserve's stepped-up fight against inflation.
In afternoon trading the Dow Jones Industrial Average tumbled 1,100 points, or 3.2%. The S&P 500 fell 3.7%, with more than 95% of companies listed on the benchmark index in the red. The tech-heavy Nasdaq fell even more sharply, diving more than 5%.
Markets rallied a day earlier after the Fed on Wednesday said it wouldn't move as quickly as some had feared to hike interest rates. But traders are starting to fret more about the impact of the Fed's moves to dampen demand for borrowing money as it tries to cool surging inflation.
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