On Thursday, US equities plummeted, wiping out all of their gains from the previous session amid a broad sell-off in risky assets that brought tech companies down to their lowest levels in more than three months.
The S&P 500 fell 4%, the Nasdaq 100 technology index fell 5.1 percent, and the Dow Jones Industrial Average fell 3.4 percent.
Resuming demand poses risk of more hawkish Fed policy
“Markets are experiencing yet another torturous period of instability, following the Fed’s advances on Wednesday.” “As multiples diminish and the post-pandemic bubble collapses, technology has been the market’s anchor for a while, and this is especially true now,” stated Adam Krisafullin, creator of Vital Knowledge.
Following an equally strong comeback, the S&P 500 and Nasdaq 100 both recovered early losses to close at least 3% higher on Wednesday afternoon.
Markets are still tense as analysts debate whether the Federal Reserve’s aggressive tightening cycle will eventually lead to a US recession.
More than 80% of S&P 500 companies released their quarterly results this week, and around 79 percent of them outperformed expectations, with an average of 4% over analysts’ predictions.