Wall Street Staggers With ‘Vicious’ $1.3 Trillion Stock Rout
- IPOs, expensive software firms, nonprofitable tech all fall
- Traders ‘spooked’ by labor costs, productivity decline: Hodge
This article is for subscribers only.
A day after celebrating the Federal Reserve’s signal that it wouldn’t be making any jumbo-sized moves, traders woke up on Thursday deciding that the central bank will struggle to fight high inflation amid the lingering threat of a recession.
In a sharp about-face, investors sold stocks, bonds and cryptocurrencies on Thursday. The S&P 500 Index lost 3.6%, erasing about $1.3 trillion of market value, and the tech-heavy Nasdaq 100 dropped 5.1%, the most since September 2020.