The good vibes on Wall Street are fading fast: US slid tumbled yet again on Friday as investors come to grips with a souring economy.
The Dow ended the day down 282 points, or 0.9%. The S&P 500 fell 1.1%, and the Nasdaq Composite was 1% lower.
The sell-off has been broad, but the real estate and consumer discretionary sectors were been hit the hardest, down more than 3% and 1.8%, respectively.
Is the Fed to blame? Sentiment on Wall Street can change on a dime, and this week is evidence of that: The Dow has tumbled about 1,050 points just since the Federal Reserve’s dour policy update at 2 p.m. ET Wednesday.
CNN Business’ Fear and Greed Index, a measure of market sentiment, finally dipped into “Fear” Friday. The market has been in “Greed” mode for weeks.
Stocks had been riding high this month on weaker-than-expected inflation and a number of stronger-than-expected reports on the broad economy and the job market. Investors were hopeful that the Federal Reserve could slow its historic pace of rate hikes and inflation could right itself sometime next year without tipping the economy into a recession.
That excitement continued right up until Fed Chair Jerome Powell crashed Wall Street’s party Wednesday with some tough news: Economists at the Fed believe US gross domestic product, the broadest measure of America’s economy, will barely grow next year.
And they predict the US unemployment rate will …….