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US Market tumbles on recession fears

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Capital Market
Last Updated : Jun 17 2022 | 11:32 AM IST
The US shares significantly tumbled on Thursday, 16 June 2022, dragging the Dow, the Nasdaq, and the S&P 500 indexes deeply into the sea of red, amid concerns that aggressive monetary policy action by central banks around the world could lead to sharply slower growth worldwide or a recession.

Following the Federal Reserve's widely expected 75 basis point interest rate hike on Wednesday, the Swiss National Bank unexpectedly raised interest rates for the first time since 2007. The Bank of England also announced another 25 basis point rate hike. Taiwan's central bank also increased its benchmark rate by 0.125 percentage points.

At the close of trade, the Dow Jones Industrial Average index declined by 741.46 points, or 2.42%, to 29,927.07. The S&P500 index was down 123.22 points, or 3.25%, to 3,666.77. The tech-heavy Nasdaq Composite Index dropped 453.06 points, or 4.08%, to 10,646.10.

All 11 major S&P sectors ended the session lower, with energy (down 5.6%), consumer discretionary (down 4.8%), information technology (down 4.1%), materials (down 3.7%), and communication services issues suffered the largest percentage losses.

ECONOMIC NEWS: Labor Department released a report showing initial jobless claims edged down to 229,000, a decrease of 3,000 from the previous week's revised level of 232,000.

Meanwhile, a separate released by the Commerce Department showed housing starts tumbled by 14.4% to an annual rate of 1.549 million in May after jumping by 5.5% to a revised rate of 1.810 million in April. The report also showed building permits slumped by 7% to an annual rate of 1.695 million in May after falling by 3% to a revised rate of 1.823 million in April.

Among Indian ADR, WNS Holdings dropped 4% to $68.48, Azure Power Global added 4.9% to $11.93, Tata Motors sank 7.6% to $24.78, and INFOSYS fell 3.4% to $17.67. Wipro fell 5.3% to $5.32, ICICI Bank dropped 3.66% to $17.11, and HDFC Bank shed 2.9% to $51.23. Dr Reddy's Labs declined 3.2% to $54.31.

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First Published: Jun 17 2022 | 9:19 AM IST

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