Wall Street Has Worst Week Since September Based on Inflation, Looming Rate Hike Worries

© AP Photo / John MinchilloA Wall Street sign is shown in the Financial District, Wednesday, Oct. 13, 2021, in the Manhattan borough of New York. Stocks are opening higher again on Wall Street, Monday, Nov. 8, 2021, continuing an upward trend that has pushed the S&P 500 to five straight weekly gains.
A Wall Street sign is shown in the Financial District, Wednesday, Oct. 13, 2021, in the Manhattan borough of New York. Stocks are opening higher again on Wall Street, Monday, Nov. 8, 2021, continuing an upward trend that has pushed the S&P 500 to five straight weekly gains. - Sputnik International, 1920, 18.12.2021
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NEW YORK (Sputnik) - Wall Street had its worst week since September as investors dumped technology to banking and energy stocks after fearing a double whammy from soaring inflation and impending rate hikes by the Federal Reserve.
"Trading will remain very choppy for the rest of the year as investors grapple falling trading volumes over the coming sessions," Ed Moya, head of research for the Americas at online trading platform OANDA, said.
The week’s biggest plunge was in the Nasdaq Composite Index, which groups the world’s most-valued stocks, including names such as Facebook, Apple, Amazon, Netflix and Google.
Nasdaq tumbled almost 3%, with some 2.5% of the loss coming from Thursday’s trading alone, after investors were overwhelmed by one staggering piece of inflation data after another, amid the Fed’s message that it might have to raise rates three times next year to contain price pressures.
Aside from Nasdaq, the Dow Jones Industrial Average, an index which contains mostly industrial stocks, fell 1.7% on the week.
The S&P 500, which lists the top 500 US stocks, finished down almost 2%.
The last time the three indexes lost as much was during the final week of September.
The Federal Reserve has projected a 5.5% growth this year for the US economy and 4% next year, after a 3.5% contraction in 2020 caused by the coronavirus pandemic measures. Despite the strong projection, the central bank faces a significant problem with inflation running at near 40-year highs as prices have soared from the lows of the pandemic.
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