Shares of showbiz followed the broader market Friday after Federal Reserve Chairman Jerome Powell indicated that the central bank would continue to aggressively raise interest rates to fight inflation.
“It will take some time to restore price stability and there is a need to forcefully use our tools to better balance demand and supply,” Powell said in a keynote address today at the central bank’s annual economic summit in Jackson Hole, Wyoming. Is.”
“Price stability is the responsibility of the Federal Reserve and serves as the backbone of our economy. Without price stability, the economy works for no one,” he said. But, “it takes some time to restore price stability. This may require maintaining a restrictive policy stance. The historical record warns against premature loosening of policy. ” she sent Dow Jones Industrial Average Losses accelerated by over 1,000 points, or just over 3%%, in the last hour of trading.
The S&P 500 fell 3.37% and the Nasdaq Composite fell 3.3%, or nearly 500 points.
This was the biggest fall in the market since June.
Tech stocks fell nearly 5% with Amazon, Snap and Google parent Alphabet. Roku fell 7%. Paramount Global and Netflix lost 4%, Disney 3%, Comcast 2%. Lionsgate scored a whopping 6.5%.
Warner Bros. Discovery, making headlines amid canceled shows, layoffs and recently a potential new head for its DC brand (Dan Lin), saw its beleaguered stock fall 3.7%.
Shares of AMC Entertainment fell 4% to $9.17. Its new APE preferred equity units fell 4.6% to $6.50.
Electronic Arts was one of the few stocks to weather the downturn, rising 3.75% on a report that Amazon is considering buying it.
With inflation hitting a 40-year high, the Fed announced a 0.75 percent interest rate hike in both June and July Market Expect another 0.50 or 0.75 percentage point increase at your next meeting in September – more likely given Powell’s speech later today. Higher rates make it harder to borrow money and risk a recession by cooling the economy. But the central bank should “continue to do this until the job is done”, painful as it may be, he said. The dance is to reduce demand for goods and services enough to contain inflation, but avoid putting the country into recession.
The Fed’s summer interest rate hikes were its most aggressive consecutive move since the early 1990s when it began using interest rates as a monetary policy tool.