US stocks post worst day in 3 months with hawkish Fed

By Ovunc Kutlu

ISTANBUL (AA) - Major US stock market indexes closed lower Thursday, posting their worst daily performance in three months a day after the Federal Reserve's rate hike and hawkish comments from Fed Chair Jerome Powell which raised recession fears.

The Dow Jones Industrial Average dove 764.13 points, or 2.25%, to finish at 33,202.22. The S&P 500 shed 99.57 points, or 2.49%, to 3,895.75.

The tech-heavy Nasdaq plummeted 360.36 points, or 3.23%, to close at 10,810.53.

The Fed on Wednesday, as expected, raised its benchmark interest rate by 50 basis points in its fight against record inflation, carrying the target range for the federal funds rate to between 4.25% and 4.5% -- its highest in 15 years.

Powell said in his post-meeting press conference that history cautions against prematurely loosening monetary policy, adding: "We will stay on course (to lower inflation) until the job is done."

"It is not important how fast we go. It is far more important to think what is the ultimate level," he said, keeping the door open for more rate hikes next year.