U.S. stocks fell sharply on Thursday, with the Dow Jones Industrial Average falling below 30,000 for the first time since January 2021, CBS reported on June 16. The fall occurs after the Federal Reserve made its biggest rate hike in decades and effort from other central banks attempting to curb rising inflation.
On Thursday, the Dow sank 2.4% to close at 29,927. The S&P 500 sank 3.3%, down 24% from its all-time high in January. The tech-heavy Nasdaq Composite Index sank 4.1%, down more than 30% from its November high.
Tesla shares sank 8.5% and Kroger shares fell 2.1%. Cosmetics maker Revon has filed for Chapter 11 bankruptcy protection, with a broken global supply chain proving to be the final straw that broke the debt-ridden company’s back.
It was also reported that U.S. real estate mortgage rates rose the most in more than 30 years, with the average rate on a 30-year loan rising to 5.78 percent from 5.23 percent a week earlier. The data showed that new home construction in the U.S. fell in May due to supply chain disruptions and lower sales.
A report by Adam Crisafulli shows that the market’s mindset is so desperate and is expecting an inevitable recession. All rallies are seen as opportunities to sell off stocks further.