A day after the Federal Reserve hiked interest rates to a historic high, US stocks plunged as more central banks around the world hiked interest rates to curb inflation.

The Dow Jones Industrial Average sank over 741 points to end 2.4 points down at 29,927.07 closing below the 30k mark for the first time since January 2021.

<a href="https://www.wionews.com/business-economy/us-federal-reserve-announces-historic-interest-rate-hike-wall-street-stocks-surge-488585">Also Read:&nbsp;US Federal Reserve announces historic interest rate hike; Wall Street stocks surge</a>

The S&amp;P 500 also dived falling 3.3 per cent to close at 3,666.78 and Nasdaq fell &nbsp;4.1 per cent to 10,646.10. The US Federal Reserve on Thursday had announced 75 basis point rate hike which was the highest since 1994.

Watch:&nbsp;US Fed announces highest interest hike since 1994

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However, central banks in UK and Switzerland also hiked rates to curb rising inflation reigniting recession fears. The Swiss National Bank raised interest rates by 50 basis points for the first time in 15 years and the Bank of England raised rates for the&nbsp;fifth time since December by 25 basis points.

UK is currently battling the highest inflation in the last 40 years at nine per cent as the markets in the UK continued to be nervous with London's benchmark FTSE 100 index closing 3.1 per cent down.

The Bank of England indicated that the UK economy will contract &nbsp;0.3 per cent in the second quarter after showing growth in the first quarter.

(With inputs from Agencies)

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A day after the Federal Reserve hiked interest rates to a historic high, US stocks plunged as more central banks around the world hiked interest rates to curb inflation.

A day after the Federal Reserve hiked interest rates to a historic high, US stocks plunged as more central banks around the world hiked interest rates to curb inflation. The Dow Jones Industrial Average sank over 741 points to end 2.4 points down at 29,927.07 closing below the 30k mark for the first time since January 2021. Also Read: US Federal Reserve announces historic interest rate hike; Wall Street stocks surge The S&P 500 also dived falling 3.3 per cent to close at 3,666.78 and Nasdaq fell 4.1 per cent to 10,646.10. The US Federal Reserve on Thursday had announced 75 basis point rate hike which was the highest since 1994. Watch: US Fed announces highest interest hike since 1994 However, central banks in UK and Switzerland also hiked rates to curb rising inflation reigniting recession fears. The Swiss National Bank raised interest rates by 50 basis points for the first time in 15 years and the Bank of England raised rates for the fifth time since December by 25 basis points. UK is currently battling the highest inflation in the last 40 years at nine per cent as the markets in the UK continued to be nervous with London's benchmark FTSE 100 index closing 3.1 per cent down. The Bank of England indicated that the UK economy will contract 0.3 per cent in the second quarter after showing growth in the first quarter. (With inputs from Agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Day after Fed rate hike, US stocks plunge amid recession fears

US stocks shot up after the Federal Reserve on Wednesday raised the benchmark borrowing rate by 0.75 percentage points amid rising inflation in the country.

It was the biggest interest rate hike in the US since 1994 with food and gas prices soaring in the country.&nbsp;

"It is essential that we bring inflation down if we are to have a sustained period of strong labour market conditions that benefit all," Federal Reserve Chair Jerome Powell said, adding, "We are not trying to induce a recession now, let's be clear about that."

<a href="https://www.wionews.com/business-economy/wall-street-stocks-crash-sp-500-enters-bear-market-amid-recession-fears-487905">Also Read:&nbsp;S&amp;P 500 enters 'bear market' amid recession fears</a>

The historic interest rate hike boosted the Dow Jones Industrial Average which ended the day 1.0 per cent up to close at 30,668.53 while the Nasdaq surged 2.5 points to 11,099.15.

Meanwhile, US President Biden hit out at major oil corporations asserting that "profit margins well above normal being passed directly onto American families are not acceptable".

Watch:&nbsp;US inflation hits new 40-year high

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In a letter to the oil companies, the US president said his administration was "prepared to use all reasonable and appropriate federal government tools and emergency authorities to increase refinery capacity" even as White House Press Secretary Karine Jean-Pierre said it was the &nbsp;"patriotic duty" of oil companies to increase output.

Biden said families "deserve immediate action" while asking oil companies to come up with concrete, near-term solutions to address the crisis.

(With inputs from Agencies)

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US stocks shot up after the Federal Reserve on Wednesday raised the benchmark borrowing rate by 0.75 percentage points amid rising inflation in the country. It was the biggest interest rate hike in the US since 1994 with food and gas prices soaring in the country.

US stocks shot up after the Federal Reserve on Wednesday raised the benchmark borrowing rate by 0.75 percentage points amid rising inflation in the country. It was the biggest interest rate hike in the US since 1994 with food and gas prices soaring in the country. "It is essential that we bring inflation down if we are to have a sustained period of strong labour market conditions that benefit all," Federal Reserve Chair Jerome Powell said, adding, "We are not trying to induce a recession now, let's be clear about that." Also Read: S&P 500 enters 'bear market' amid recession fears The historic interest rate hike boosted the Dow Jones Industrial Average which ended the day 1.0 per cent up to close at 30,668.53 while the Nasdaq surged 2.5 points to 11,099.15. Meanwhile, US President Biden hit out at major oil corporations asserting that "profit margins well above normal being passed directly onto American families are not acceptable". Watch: US inflation hits new 40-year high In a letter to the oil companies, the US president said his administration was "prepared to use all reasonable and appropriate federal government tools and emergency authorities to increase refinery capacity" even as White House Press Secretary Karine Jean-Pierre said it was the "patriotic duty" of oil companies to increase output. Biden said families "deserve immediate action" while asking oil companies to come up with concrete, near-term solutions to address the crisis. (With inputs from Agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

US Federal Reserve announces historic interest rate hike; Wall Street stocks surge

Tokyo led a rout of Asian shares Thursday, <a href="http://www.wionews.com/business-economy/us-federal-reserve-hikes-interest-rates-wall-street-stocks-tumble-185385">mirroring big losses on Wall Street </a>after the Fed defied unprecedented pressure from Donald Trump and raised interest rates, sparking fears the move could choke economic growth.

The Nikkei plunged to a 15-month low as investors took fright over the pace of monetary tightening, with a slump triggered by the Dow's fall to its lowest level of 2018 gathering pace.

The US Federal Reserve raised rates for the fourth time this year - as expected - but markets reacted badly after chairman Jerome Powell said the bank would not shift course on reducing its balance sheet.

Investors had hoped for a less aggressive approach amid concern that global growth is slowing, but Powell played down the impact of recent market turmoil on the US economy.

"They think the Fed has completely misjudged the situation and now it's just a matter of just trying to find an exit while you can," said Kyle Rodda, a market analyst at IG Group in Melbourne.

"We're probably entering a stage now where markets have got it (in) their head that we're preparing for quite sustained downside going into 2019."

The Fed now projects only two interest rate increases, down from three previously, as it trimmed its forecast for US growth and inflation.

Stephen Innes, head of Asia-Pacific trade at OANDA, said the "Fed delivered a dovish hike, but clearly, there wasn't enough affirmation in the statement that the Fed was close to pausing or ending their interest rate hike cycle sooner than expected".

Some analysts were puzzled by investors' reaction.

Ray Attrill, strategist at National Australia Bank, said the post-Fed sentiment was "a bit surprising" given the bank stressed a "gradual" pace of rate hikes next year.

But the spillover from the rate hike continued to rattle investors in Asia Thursday, deepening concern over global growth prospects which are already facing headwinds from President Trump's trade war with Beijing, a slowing Chinese economy, and potential turmoil from Britain quitting the European Union.

Japanese stocks were given little support by the Bank of Japan, which left rates unchanged with the threat of trade protectionism and slowing global growth casting a pall over the export-dependent economy.

A strong yen also put downward pressure on stocks, with the dollar falling below 112 yen.

Nissan dropped more than two per cent after a Japanese court rejected prosecutors' request to extend the detention of former Nissan chairman Carlos Ghosn after his arrest for financial misconduct.

Shanghai was down more than 0.5 per cent, even after the People's Bank of China said it would supply lower-cost liquidity for up to three years to banks willing to lend more to small companies, as policymakers aim to shore up the flagging economy.

Sydney closed more than one per cent lower while Hong Kong was also down in afternoon trade.

Wednesday's quarter-point hike in the US came after Trump repeatedly demanded on Twitter the bank hold rates, in what was regarded as the most public assault on the Fed's independence in decades.

The US president has cited the dollar's strength as a reason the Fed should stop raising interest rates because higher rates tend to attract foreign capital to a currency.

Both oil contracts slid Thursday, reversing strong gains from a day earlier on concerns about growth and US oversupply, and tracking equity losses.

A smaller than expected fall in US crude stockpiles added to supply glut fears triggered earlier this week by forecasts of increasing shale oil production.

Traders are also wary of prospects of softening global growth.

"A tepid global economic growth outlook also weighed on oil prices as the demand for energy is probably going to remain subdued," said Margaret Yang Yan, from CMC Markets in Singapore.

Tokyo led a rout of Asian shares Thursday, mirroring big losses on Wall Street after the Fed defied unprecedented pressure from Donald Trump and raised interest rates, sparking fears the move could choke economic growth.

Tokyo led a rout of Asian shares Thursday, mirroring big losses on Wall Street after the Fed defied unprecedented pressure from Donald Trump and raised interest rates, sparking fears the move could choke economic growth. The Nikkei plunged to a 15-month low as investors took fright over the pace of monetary tightening, with a slump triggered by the Dow's fall to its lowest level of 2018 gathering pace. The US Federal Reserve raised rates for the fourth time this year - as expected - but markets reacted badly after chairman Jerome Powell said the bank would not shift course on reducing its balance sheet. Investors had hoped for a less aggressive approach amid concern that global growth is slowing, but Powell played down the impact of recent market turmoil on the US economy. "They think the Fed has completely misjudged the situation and now it's just a matter of just trying to find an exit while you can," said Kyle Rodda, a market analyst at IG Group in Melbourne. "We're probably entering a stage now where markets have got it (in) their head that we're preparing for quite sustained downside going into 2019." The Fed now projects only two interest rate increases, down from three previously, as it trimmed its forecast for US growth and inflation. Stephen Innes, head of Asia-Pacific trade at OANDA, said the "Fed delivered a dovish hike, but clearly, there wasn't enough affirmation in the statement that the Fed was close to pausing or ending their interest rate hike cycle sooner than expected". Some analysts were puzzled by investors' reaction. Ray Attrill, strategist at National Australia Bank, said the post-Fed sentiment was "a bit surprising" given the bank stressed a "gradual" pace of rate hikes next year. But the spillover from the rate hike continued to rattle investors in Asia Thursday, deepening concern over global growth prospects which are already facing headwinds from President Trump's trade war with Beijing, a slowing Chinese economy, and potential turmoil from Britain quitting the European Union. Japanese stocks were given little support by the Bank of Japan, which left rates unchanged with the threat of trade protectionism and slowing global growth casting a pall over the export-dependent economy. A strong yen also put downward pressure on stocks, with the dollar falling below 112 yen. Nissan dropped more than two per cent after a Japanese court rejected prosecutors' request to extend the detention of former Nissan chairman Carlos Ghosn after his arrest for financial misconduct. Shanghai was down more than 0.5 per cent, even after the People's Bank of China said it would supply lower-cost liquidity for up to three years to banks willing to lend more to small companies, as policymakers aim to shore up the flagging economy. Sydney closed more than one per cent lower while Hong Kong was also down in afternoon trade. Wednesday's quarter-point hike in the US came after Trump repeatedly demanded on Twitter the bank hold rates, in what was regarded as the most public assault on the Fed's independence in decades. The US president has cited the dollar's strength as a reason the Fed should stop raising interest rates because higher rates tend to attract foreign capital to a currency. Both oil contracts slid Thursday, reversing strong gains from a day earlier on concerns about growth and US oversupply, and tracking equity losses. A smaller than expected fall in US crude stockpiles added to supply glut fears triggered earlier this week by forecasts of increasing shale oil production. Traders are also wary of prospects of softening global growth. "A tepid global economic growth outlook also weighed on oil prices as the demand for energy is probably going to remain subdued," said Margaret Yang Yan, from CMC Markets in Singapore.

Asian markets sink after US Federal Reserve hikes rates

The US Federal Reserve Chair Janet Yellen said on Thursday that an interest rate hike can be expected &quot;relatively soon&quot; if economic data gives further evidence of progress in the economy.&nbsp;

In November meeting, Fed policymakers judged that the case for a rate hike had strengthened but the increase will only be gradual, keeping in mind the slowly improving labour market and rising inflation.&nbsp;

The experts noted that the market conditions had improved which would push inflation toward the Fed&#39;s 2 per cent target. The lawmakers on the Federal Open Market Committee, which includes members of both the House and Senate, will now have an opportunity to question Yellen before the decision is taken.&nbsp;

Yellen said there is still room for improvement in the labour market but the Fed cannot delat raising rates for too long. Keeping rates low &quot;for too long could also encourage excessive risk-taking and ultimately undermine financial stability,&quot; she said.

(WION with inputs from agencies) 
&nbsp;

Chair Yellen said according to the Fed experts the economy appeared on track to grow moderately, allowing for a hike 'relatively soon'

The US Federal Reserve Chair Janet Yellen said on Thursday that an interest rate hike can be expected "relatively soon" if economic data gives further evidence of progress in the economy. In November meeting, Fed policymakers judged that the case for a rate hike had strengthened but the increase will only be gradual, keeping in mind the slowly improving labour market and rising inflation. The experts noted that the market conditions had improved which would push inflation toward the Fed's 2 per cent target. The lawmakers on the Federal Open Market Committee, which includes members of both the House and Senate, will now have an opportunity to question Yellen before the decision is taken. Yellen said there is still room for improvement in the labour market but the Fed cannot delat raising rates for too long. Keeping rates low "for too long could also encourage excessive risk-taking and ultimately undermine financial stability," she said. (WION with inputs from agencies)

US Federal Reserve hints at interest rate hike next month

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Day after Fed rate hike, US stocks plunge amid recession fears

US Federal Reserve announces historic interest rate hike; Wall Street stocks surge

Asian markets sink after US Federal Reserve hikes rates

US Federal Reserve hints at interest rate hike next month