U.S. stocks declined sharply in early trading Friday, extending a weeks-long slide fueled by inflation and recession fears. The Dow Jones Industrial Average fell more than 400 points, under 30,000 points for the first time since June, shortly after the opening bell.
About a half-hour into the trading session, the Dow Jones index was down 425.83 points, or 1.42%, to 29,65085. The S&P 500 dropped 68.14 points, or 1.81%, to 3,689.85, and the Nasdaq Composite was down 224.14 points, or 2.03%, to 10,836.07.
It was the fourth day in a row all three indices declined.
The Federal Reserve on Wednesday hiked interest rates 0.75% for the third time in a row. The central bank said raising the benchmark rate is necessary to stifle inflation. But some Wall Street analysts and investors fear the Fed’s moves are too aggressive and could cause an economic decline.
“Based on our client discussions, a majority of equity investors have adopted the view that a hard landing scenario is inevitable and their focus is on the timing, magnitude, and duration of a potential recession and investment strategies for that outlook,” Goldman Sachs’ David Kostin wrote in a note to clients.
Some of the tech stocks that declined included Apple (AAPL), which traded at $150.37, down $2.77 or 1.57%; and Qualcomm’s (QCOM) price of shares fell $3.36, or 2.72%.