04:43 GMT02 December 2020
Listen Live
    Get short URL

    WASHINGTON (Sputnik) – A week of investor panic ended with the Dow Jones Industrial Average closing down 665 points on Friday, the biggest point decline since the 2008 financial crisis, the New York Stock Exchanges reported.

    Friday's plunge knocked the Dow to 25,520.96, a more than 2.5 percent loss from the previous session. Both the Dow and Standard & Poor’s index of 500 stocks suffered their biggest weekly drops since early 2016, roughly 4% each.

    Analysts cited fears of impending interest rate increases by the US Federal Reserve Board to calm an overheated economy, as well as the threat of inflation, with US economic growth at its highest level since prior to the Great Recession of 2008.

    The sharp sell-off followed weeks in which major stock indexes set new records, almost on a daily basis.

    Meanwhile, the US benchmark interest rate will likely remain in the range of 1.25 to 1.5 percent, the Federal Open Market Committee (FOMC) said in a statement on Wednesday.

    "In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1-1/4 to 1‑1/2 percent," the FOMC said.

    The Fed also indicated earlier that it would continue its policy of gradually tightening monetary policy in 2018.



    Stronger US Core Inflation Suggests Fed Rate Hike in March
    'More Data,' Please: US Fed Officials Sceptical After Inflation Info
    US Inflation Exceeds Fed Target, Supporting Case for December Hike
    US Economy Doing Well, But Miserable Consumers: Inflation Falters in July
    US Inflation Surges as Struggling Retailers Post Upbeat Sales
    interest rate, plunge, economy, stocks, Dow Jones Industrials Average Index, NYSE, US
    Community standardsDiscussion