Stocks declined Friday as fears grow over a recession taking place as the Federal Reserve continues hiking interest rates.
The Dow Jones Industrial Average shed 281.76 points, or 0.85%, to 32,920.46. The S&P 500 declined 1.11% to 3,852.36. Meanwhile, the tech-heavy Nasdaq Composite plunged 0.97% to 10,705.41.
The indexes notched a second consecutive week of losses. The S&P 500 slumped 2.08% for the week, putting its December losses at 5.58%, as hopes for a year-end rally are dashed. The Dow and Nasdaq slid 1.7% and 2.7%, respectively.
The sell-off was broad-based, with three stocks slumping for every advancer at the New York Stock Exchange. At one point, there were only 10 S&P 500 names in positive territory. The real estate and consumer discretionary sectors were the most significant losers, down nearly 3% and 1.7%, respectively.
Stocks plunged this week in the wake of the Fed’s 50 basis point interest rate hike on Wednesday — the highest rate in 15 years. The central bank said it would continue hiking rates through 2023 to 5.1%, a bigger figure than previously expected.
