US stock markets with biggest losses in nearly two years

Fearless Girl statue in front of the US Stock Exchange on Wall Street

New York Investors are fleeing US stock markets for fear of more drastic interest rate hikes by the Fed and the consequences for the economy. The Dow Jones Standard Value Index closed down 3.6% on Wednesday at 31,490 points. The tech-heavy Nasdaq fell 4.7% to 11,418 points. The broad S&P 500 lost 4% to 3923 points.

“Markets don’t like uncertainty,” said Brooke May, a partner at wealth management firm Evans May. “It’s unclear how far the Fed will have to go to get inflation under control. Higher interest rates are hurting consumer spending and also hurting corporate profits.

Fed Chairman Jerome Powell previously reiterated his commitment to fighting inflation and did not rule out more aggressive rate hikes. The dollar index, which tracks rates against major currencies, then returned to its most recent 19½-year high, rising 0.3% to 103.64 points.

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