US stocks slumped on Friday as investors continue to fear the Federal Reserve’s hawkish stance as it remains worried about rising inflation than a looming recession.
Fed chairman Jerome Powell hiked interest rates by 50 basis points at the FOMC meeting on Wednesday, a step down from its prior outsized interest rate hikes of 75 basis points.
For the Fed Funds rate to reach the projected 5.1% level, the central bank would need to hike interest rates by 25 basis points three times in 2023. But investors have only been expecting one interest rate hike of 25 basis points next year.
Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Friday:
- S&P 500: 3,878.30, down 0.5%
- Dow Jones Industrial Average: 33,040.78, down 0.5% (161 points)
- Nasdaq Composite: 10,812.04, up 0.01%
