Stocks tumble after Fed hikes interest rates

New York Stock Exchange
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Stocks bounced back by 1.5% late Wednesday after the Federal Reserve announced an interest rate increase, but the reversal proved short-lived.

The stock market returned to its previous downward trajectory Thursday by sliding roughly 3.3% across the board.

The dip carried across national borders as well as oceans: Europe also suffered dives in stocks as central banks there upped interest rates.

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What’s the market forecast? Economists are predicting more market swings as investors remain uncertain that the Fed can slow inflation without driving the economy into a recession.

Economists at Deutsche Bank have moved up their prediction for the start of a U.S. recession to mid-2023. Decreasing unemployment is helping hold up the economy.

This story originally appeared in WORLD. © 2022, reprinted with permission. All rights reserved.

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