US stocks tumbled in early trade on Tuesday, a day before the Federal Reserve’s expected interest rate hike.
The Dow Jones Industrial Average fell 387.21 points, or 1.25%, to 30,632.47 an hour after trading opened at 9:30 a.m. ET.
The S&P 500 fell 48.61 points, or 1.25%, to 3,851.28, and the Nasdaq Composite fell 109.56 points, or 0.95%, to 11,433.76.
Investors’ fears about inflation and the economic slowdown have led to widespread selling over the past several weeks. The Fed may announce a 75 bps hike in interest rates on Wednesday.
Dominic Wilson of Goldman Sachs wrote in a note, “The growing fear of recession risk has helped keep US policy rate pricing upside down from early 2023 to early 2026 and could help explain why equities Why is the volatility higher than in the macro scenario.” Customer Tuesday. “Still, if a more rigorous view of the labor market is correct, the markets will need to adjust significantly.”