The Dow had its worst day since 2020 May 5, slipping 1,063 points, according to The Wall Street Journal.
1. The Dow Jones Industrial Average posted its largest gain since 2020 on May 4, followed a day later by its biggest decline in about two years.
2. The slip came after Jerome Powell, Federal Reserve chair, said the Fed wasn’t planning to raise interest rates by 0.75 percent, even after inflation hit its highest level in 40 years.
3. Technology shares fell hard, with Tesla dropping 8.3 percent and Amazon down 7.6 percent. Bank stocks were down 2.7 percent.
4. Investors are questioning how high the Fed will raise rates, and the effect on corporate profits, according to the report.
5. Witnessing the volatile markets, strategists and investors reported being “hesitant” about the stock market’s outlook in the near term, according to the report.