Wall Street slumps at open on recession fears

Thursday, 29. September 2022 15:30

Major stock exchanges on Wall Street opened on Thursday in the red, after recording significant gains in the closing session the previous day after the markets saw relief following the Bank of England's decision to purchase government bonds to restore stability in the gilts market.

Fears of a recession appear to have been the driving force behind the negative sentiment, as the Federal Reserve's hawkish comments suggest that tightening policy will continue until the raging inflation begins to show indications of coming down, with the country's latest data on gross domestic product revealing a drop for the second quarter of the fiscal year.

The Dow Jones Industrial Average slumped by 0.64% or 192 points with Walgreens Boots Alliance, Inc. sinking by 3.67%. The Nasdaq 100 plunged by 1.39% with Lucid Group Inc., its worst performer, nosediving 4.40%. The S&P 500 dropped by 0.98% as CarMax Inc. pulled the index down by 16.60%.

The euro lost 0.08% against the American currency, to change hands to $0.97291 at 9:27 am ET.

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