Stocks slump worldwide on Fed’s interest rate plans
Wall Street fell sharply Thursday in an ugly day for stocks worldwide on expectations that U.S. interest rates will stay high well into next year.
The Standard & Poor’s 500 index lost 1.6% for its worst day since March. That followed a 0.9% drop Wednesday after the Federal Reserve indicated it may cut interest rates next year by only half of what it had earlier predicted. The Fed has already raised its main interest rate to the highest level since 2001, which helps slow inflation but at the cost of hurting investment prices.
High-growth stocks are typically among the hardest hit by high rates, and Big Tech stocks again took the brunt of the pain for a second straight day. The Nasdaq composite dropped 1.8% as Amazon fell 4.4%, Nvidia…
