Dow sheds over 1,000 points as sell-off deepens on Wall Street

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Traders work at the New York Stock Exchange (NYSE) in New York, the United States, April 29, 2022. (Xinhua/Wang Ying)

The 30-stock index and the Nasdaq booked their worst daily drops since 2020, according to Dow Jones Market Data.

NEW YORK, May 5 (Xinhua) — U.S. stocks plunged on Thursday as heavy selling intensified on Wall Street.

The Dow Jones Industrial Average tumbled 1063.09 points, or 3.12 percent, to 32,997.97. The S&P 500 fell 153.30 points, or 3.56 percent, to 4,146.87. The Nasdaq Composite Index shed 647.17 points, or 4.99 percent, to 12,317.69. The 30-stock index and the Nasdaq booked their worst daily drops since 2020, according to Dow Jones Market Data.

All the 11 primary S&P 500 sectors ended in red, with consumer discretionary and technology down 5.81 percent and 4.93 percent, respectively, leading the losses.

The pullback came one day after the U.S. Federal Reserve delivered a widely anticipated interest rate hike.

The Fed on Wednesday announced a half-point increase in its benchmark rate, the sharpest rate hike since 2000, as part of its effort to fight inflation.

The U.S. central bank also decided to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities on June 1.

In his press conference, Fed Chair Jerome Powell said half-point rises remain on the table for the next couple of meetings, adding a 75-basis-point hike was not actively being considered.

The U.S. equities markets reacted positively to Powell’s comments on Wednesday, which saw the Dow jump more than 900 points.

On the economic front, U.S. initial jobless claims, a rough way to measure layoffs, increased by 19,000 to 200,000 in the week ending April 30, the Department of Labor reported on Thursday. Economists polled by The Wall Street Journal had estimated new claims would rise only to 182,000.

The more closely-watched April U.S. payrolls report, which will include employment data from both the private sector and the government, is set to be released Friday.