Markets are reacting poorly to newly announced Fed measures this week to raise interest rates, fanning fears of a global recession that is becoming more palpable.
- The Dow Jones reached its lowest close of 2022, losing 486 points, or 1.62%, to close at 25,590. The 30-company index broke the 30,000 level for the second time this year for a 3.69% loss this week and 19.12% since January.
- The S&P 500 lost 1.72% to close at 3,693. The index is down more than 4% since Monday and 23% year-to-date.
- The Nasdaq Composite was down 1.8% at the close for a drop of 3.69% on the week and 19.12% since January.
Yields for Treasury bonds continue to rise, with the two-year note settling comfortably above the 4% mark at 4.2%.
Federal Reserve Chair Jerome Powell said at a “Fed Listens” event on Friday that his agency continues its work to recover from the pandemic in what he termed a “uniquely challenging period.”