US stocks end sharply lower amid recession fears

By Gokhan Ergocun

ISTANBUL (AA) – Major US stock indexes ended sharply lower Thursday after a number of central banks around the world followed the Federal Reserve’s lead and raised interest rates to curb inflation, renewing concerns over a recession.

The Fed increased its benchmark interest rate by 75 basis points Wednesday, the strongest hike since 1994.

Central banks including the Bank of England and Taiwan’s central bank followed suit and lifted rates while warning of soaring inflation and lower economic growth respectively.

The Dow Jones Industrial Average dropped 741.46 points, or 2.42%, to close at 29,927.07.

The S&P 500 lost 123.22 points, or 3.25%, to end the day at 3,666.77.

The Nasdaq was down by 453.06 points, or 4.08%, to finish at 10,646.10.

The VIX volatility index, also known as the fear index, was up 11.24% at 32.95 as of 5.19 p.m. Eastern Time (2119GMT).

The dollar index dropped 1.28% to 103.82 and the 10-year US Treasury yield fell 5.89% to 3.195%.

Precious metals were meanwhile on the positive side as gold rose 1.25% to $1,856.74 per ounce and silver was up 2.5% at $21.95.

Global benchmark Brent crude was trading at $119 a barrel for a 0.16% decline while US benchmark West Texas Intermediate crude was at $117.06 – a 1.52% increase.