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Stocks tumble after Fed hikes rates

A New York Stock Exchange sign Associated Press/Photo by Seth Wenig

Stocks tumble after Fed hikes rates

Stocks bounced back by 1.5 percent late Wednesday after the Federal Reserve announced an interest rate increase, but the reversal proved short-lived. The stock market returned to its previous downward trajectory Thursday by sliding roughly 3.3 percent across the board. The dip carried across national borders as well as oceans: Europe also suffered dives in stocks as central banks there upped interest rates. 

What’s the market forecast? Economists are predicting more market swings as investors remain uncertain that the Fed can slow inflation without driving the economy into a recession. Economists at Deutsche Bank have moved up their prediction for the start of a U.S. recession to mid-2023. Decreasing unemployment is helping hold up the economy.

Dig deeper: Listen to financial expert David Bahnsen field questions from World Journalism Institute students about the state of the economy on The World and Everything in It podcast.

Josh Schumacher

Josh is a breaking news reporter for WORLD. He’s a graduate of World Journalism Institute and Patrick Henry College.

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