December 6, 2022

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The Dow is down 500 points as Apple leads a massive sell-off in the market

The Dow is down 500 points as Apple leads a massive sell-off in the market

Stocks resumed their sell-off in 2022 on Thursday, giving up the previous day’s rally and sending the S&P 500 index to a new low for the year, as fears spread that a recession wouldn’t stop the Federal Reserve from raising interest rates.

The broad sell-off was led by Apple, which fell as a major investment bank cut its one-time bear market rating. The stock was last down about 6%.

The S&P 500 fell 2.9% to a new bear market low of the year. The Dow Jones Industrial Average fell 681 points, or 2.3%, while the tech-heavy Nasdaq Composite was down 3.9%.

The moves came on the heels of a broad rally in shares on Wednesday, Bank England said it would buy bonds in an effort to help stabilize its financial markets and the British pound. The pound sterling fell to Record lows against the US dollar in the last days.

On Wednesday, the Dow rose more than 500 points, or 1.9%, while the S&P 500 rose about 2%, both cutting a six-day losing streak.

“[We] It remains skeptical that the calmer mood in markets on Wednesday marks the end of a recent period of elevated volatility or risk-off sentiment, UBS’ Mark Heffel wrote in a note on Thursday. “Evidence that inflation is under control, allowing central banks to You become less stressed.”

The 10-year US Treasury yield rebounded to trade at around 3.753%. The day before, it posted its biggest one-day drop since 2020 after briefly topping 4%.

A stronger-than-expected jobless claims report didn’t help the sentiment. This was built on the idea that the Federal Reserve would keep raising interest rates to fight inflation without worrying that it might hurt the labor market.

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In an appearance Thursday on CNBC’s “Squawk Box,” Cleveland Federal Reserve President Loretta Meester said interest rates are not yet tight, saying there is more that needs to be done to bring down inflation.

Wednesday’s rally put the major averages on pace for a losing week and their worst month since June. The Nasdaq Composite is leading the monthly losses, down about 9%, while the Dow and Standard & Poor’s are closing down 7% and 7.7%, respectively.