Financial markets dive as tech stocks slump and recession fears mount – CBS News

The Nasdaq composite, heavily weighted with technology stocks, bore the brunt of the damage this month, ending April with a 13.3% loss, its biggest monthly decline since the 2008 financial crisis.

Federal Reserve Chair Jerome Powell has indicated the central bank may hike short-term interest rates at double the usual pace at upcoming meetings, starting in less than two weeks.

Tech had posted gigantic gains during the pandemic and now is starting to look overpriced, particularly with interest rates set to rise sharply as the Fed steps up its fight against inflation.

Internet retail giant Amazon slumped 14.2%, the biggest decline in the S&P 500, after reporting its first quarterly financial loss since 2015 and giving investors a disappointing revenue forecast.

Major indexes have been shifting between slumps and rallies throughout the week as the latest round of corporate earnings hit the market in force.

It has already raised its key overnight rate once, the first such increase since 2018, and Wall Street is expecting several big increases over the coming months.

Prices for everything from food to gas have been rising as the economy recovers from the pandemic and there has been a big disconnect between higher demand and lagging supplies.

The S&P 500’s consumer staples sector, which includes many household and personal goods makers, is on track to be the only sector in the benchmark index to make gains in April.

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