US stocks sink after UK and Switzerland follow Fed in raising rates

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US stocks sink after UK and Switzerland follow Fed in raising rates via IrishTimesBiz

Stocks on the New York Stock Exchange fell sharply as investors reacted to the Federal Reserve's largest rate hike since 1994 alongside rate rises in the UK and Switzerland. Photograph: Spencer Platt/Getty ImagesStocks sold off sharply in the US on Thursday after Switzerland and the UK joined a global rush to raise interest rates, stoking concerns that central banks’ attempts to tame high inflation could push economies across the globe into a downturn.

The S&P had closed the previous session 1.5 per cent higher after the Federal Reserve raised its main interest rate by a historic 0.75 percentage points, tempered by comments from chairman Jay Powell saying he expected rises of this magnitude to be relatively uncommon. Along with a rate hike by the Bank of England, it reignited fears that attempts by central banks to curb inflation could lead to sharply slower growth worldwide or a recession.

Dublin’s Iseq index fared better than some of its European peers but still gave up another 2 per cent on the day. “They have a plan to develop a plan, but the market wants more detail,” said Willem Sels, global chief investment officer at HSBC’s private bank.

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Wall Street stocks tumble as UK and Switzerland follow Fed with rate risesWall Street stocks tumble as UK and Switzerland follow Fed with rate rises via IrishTimesBiz
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