Yahoo Finance S&P 500 slumps as Fed fears keep tech in firing line
By Yasin Ebrahim
Investing.com -- The S&P 500 slipped Tuesday, as ongoing jitters about the Federal Reserve remaining hawkish for longer and tipping the economy into recession continued to weigh on investor sentiment.
The S&P 500 fell 2%, the Dow Jones Industrial Average slipped 1.5%, or 511 points, and the Nasdaq Composite lost 2.5%.
Big tech continued its push into the red, paced by a more than 6% decline in Meta Platforms (NASDAQ:FB) amid increased regulatory scrutiny.
Alphabet (NASDAQ:GOOGL) fell more than 2%, while Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) were down about 1%.
The Fed is broadly expected to slow the pace of rate hikes to 0.5% at its meeting next week. But its projections about the path of future rate hikes are likely to dominate investor attention.
Recent economic data including an upside surprise in services activity and a strong monthly jobs report has stoked investor fears that Fed’s higher for longer rate regime may tip the economy into recession.
“The bottom line is that this [wage-driven inflation] isn’t an easy fix,” said Eric Diton, President and Managing Director at The Wealth Alliance, in a recent interview with Investing.com’s Yasin Ebrahim. "The only way the Fed's really going to get this pressure on wages down is to cause a recession, which they probably will."
Energy stocks were dragged lower by falling oil prices amid jitters about slowing global growth and worries about the oil demand outlook even as China, the world’s top energy importer, recently eased economically draining COVID restrictions.
APA Corporation (NASDAQ:APA), Marathon Oil (NYSE:MRO), and EOG Resources Inc (NYSE:EOG) led the losses, with the latter down more than 4%.
PepsiCo (NASDAQ:PEP) lost about 1% as reports the firm is readying hundreds of job cuts at its North American snacks and beverages divisions sparked jitters about slowing growth.
Silvergate Capital (NYSE:SI), the heavily exposed lender to cryptocurrency firms, continued to rack up losses falling 6% even as chief executive officer Alan Lane said the bank had ample liquidity to meet customer withdrawals.
In other news, Boeing Co (NYSE:BA) is set to roll out its last 747 jet, marking the end of the aircraft’s 50-year iconic reign as the company moves to produce more efficient jets.
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