Media Shares In The Red As Stocks Sink On Recession Fears After Fed’s Biggest Interest Rate Hike Since 1994
deadline.comShares resumed a downward trajectory today after a brief respite as markets digested a major rate hike by the U.S. central bank and comments by Fed chief Jerome Powell.
A decisive Fed move to raise interest rates by three quarters of a percentage point boosted shares briefly Wednesday but optimism faded quickly with major indexes all down sharply.The Dow is off more than 700 points, the Nasdaq and S&P 500 are down, respectively, 4% and 3.2% after the biggest rate hike since 1994.
Powell said at a press conference that the Fed’s Open Market Committee could announce another similar raise at its July meeting (it upped rates by half a point last month) to try to tame soaring inflation, which is at a 40-year high.Entertainment shares are taking a bath with Warner Bros.
Discovery down 9%, among the hardest hit, as JP Morgan initiated coverage today with a ‘neutral’ rating and a price target of $22.Paramount is off by 6%, Comcast by 5%.
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