Markets, Media Stocks Swoon On Fed Chief’s Hawkish Interest Rate Stance; Dow Sheds 1,000 Points
deadline.comShowbiz shares followed broader market lower Friday after Federal Reserve chair Jerome Powell indicated the central bank will continue aggressively raising interest rates to fight inflation.“Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance,” Powell said at a keynote speech today at the central bank’s annual economic summit in Jackson Hole, Wyoming.“Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy.
Without price stability, the economy does not work for anyone,” he said. But, “Restoring price stability will likely require maintaining a restrictive policy stance for some time.
The historical record cautions strongly against prematurely loosening policy.” He sent the Dow Jones Industrial Average plunging more than 1,000 points, or just over 3%%, with losses accelerating in the final hour of trading.The S&P 500 fell 3.37% and the hard hit Nasdaq Composite dropped 3.3% or nearly 500 points.It was the biggest market tumble since June.Tech stocks slumped with Amazon, Snap and Google parent Alphabet down around 5%.
Roku fell 7%. Paramount Global and Netflix shares fell by 4%, Disney by 3%, Comcast by 2%. Lionsgate took a hefty 6.5% knock.Warner Bros.
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