Breaking News: U.S. Stock Market Plummets Amid Economic Slowdown Fears and Fed Policy Concerns
By Chuck Mikolajczak
In a shocking turn of events, U.S. stocks took a nosedive on Thursday as concerns over the economy's rapid slowdown and the Federal Reserve's strict monetary policy sent shockwaves through the market.
Initially, equities saw a glimmer of hope with Meta Platforms (NASDAQ:) reporting stellar quarterly results and a positive outlook for the third quarter, causing a surge in their stock price. However, the optimism was short-lived as data from the Institute for Supply Management (ISM) revealed a significant drop in manufacturing activity, signaling contraction.
Market expert Tim Ghriskey from Ingalls & Snyder explained, "The ISM report triggered a chain reaction of selling, leading to a downward spiral in the market. While there may be positive surprises during earnings season, negative reports like the ISM data can cause investors to take profits."
The Dow Jones Industrial Average fell 641.99 points, the S&P 500 lost 97.64 points, and the Nasdaq dropped 485.21 points, with tech giants like Apple and Amazon facing heavy losses ahead of their quarterly earnings announcements.
Furthermore, chip stocks like Nvidia and Arm Holdings suffered significant declines, dragging the tech sector down. On the other hand, Eli Lilly saw a 3% rise after positive trial results for their weight-loss drug Zepbound.
Overall, the market saw a ratio of declining issues outnumbering advancers, with defensive sectors like utilities and real estate seeing gains. The S&P 500 recorded new highs and lows, indicating a volatile trading session.
As the market grapples with economic uncertainties and policy concerns, investors must remain vigilant and stay informed to navigate these challenging times.