Sun, 14 Aug 2022

NEW YORK, New York - A day after making major gains, U.S. stocks dived on Thursday with across-the-board losses on recession fears.

The technology sector was hardest hit with the Nasdaq Composite shedding more than four percent of its value.

The U.S. dollar surprisingly was sharply sold off despite an early rebound during Asian trading.

"Investor sentiment seems to only be able to focus on one thing at a time," Susan Schmidt of Aviva Investors told CNBC Thursday.

"Yesterday, the Fed delivered as people expected. It was combating the consumer price index data that was much higher than people expected and raised concerns about inflation being so aggressive. Investors are now remembering that the counter to this is a slowing of the economy."

The Swiss and Hungary central banks hiked interest rates Thursday, as did the Bank of England. "We are in a new era for central banks, where lowering inflation is their only objective, even at the expense of financial stability and growth," George Lagarias, Chief Economist at Mazars Wealth Management told Reuters Thursday.

The Dow Jones industrials tumbled 741.46 points or 2.42 percent to close Thursday at 29,927.07.

The Nasdaq Composite shed 453.06 points or 4.08 percent to 10,646.10.

The Standard and Poor's 500 retreated 123.20 points or 3.25 percent to 3,666.79.

On foreign exchange markets, it was a mini bloodbath as the U.S. dollar reversed course and was sold off sharply across the board.

The Swiss franc soared to 0.9654. The British pound rallied to 1.2361. The euro jumped to 1.0568. The Japanese yen was sharply higher at 1.3205.

The Canadian dollar ground its way up to 1.2933. The Australian dollar rose to 0.7055. The New Zealand dollar strengthened to 0.6364.

The Nikkei 225 in Japan made the best attempt, finishing with a 105.04 points or 0.40 percent gain to 26,431.20.

China's Shanghai Composite however declined 20.02 points or 0.61 percent to 3,285.38.

In New Zealand, the S&P/NZX 50 added a miserly 10.66 points or 0.10 percent to 10,646.38.

Australia's All Ordinaries edged down 2.10 points or 0.03 percent to 6,783.70.

South Korea's Kospi Composite finished 4.03 points or 0.16 percent in front at 2,451.41.

The Hang Seng shed 462.78 points or 2.17 percent to 20,845.43.

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