NEW YORK, Sept 21 - Wall Street tumbled on Thursday, with investor risk appetite dampened by worries that the Federal Reserve's monetary policy will remain restrictive for longer.
If current levels hold, the S&P 500 will close at its lowest since late June and the Nasdaq posting its lowest close since mid-August. But revised economic projections, including the closely watched dot plot, showed interest rates will remain elevated through next year, dampening hopes for a dovish policy pivot before 2025.
"Higher for longer" has become a common credo among the central banks of the world's biggest economies as global policy tightening, in order to tame inflation, reaches its peak. Semiconductor firm Broadcom slid 1.7% following a report that Alphabet-owned Google's executives discussed dropping the company as a supplier of artificial intelligence chips as early as 2027.Klaviyo Inc gained 0.2% the day after its debut as a public company, while another recent IPO, Arm Holdings was off 2.9% and threatening to break below its $51 offer price.