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Fears Of Aggressive Rate Hikes Return To Wall Street As Dow Jones Plummets

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Kay Smythe News and Commentary Writer
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The Dow Jones Industrial Average futures plummeted more than 350 points (1.01%) Monday as fears of aggressive rate hikes plague Wall Street.

S&P 500 futures fell 1.21% and Nasdaq 100 futures dropped 1.56% on Monday as European markets underwent a significant decline, driven by concerns of rising inflation and heightened interest rates globally, CNBC reported. Investors are anticipating a volatile week of trading as Federal Reserve Chairman Jerome Powell heads to the annual Jackson Hole Economic Symposium.

The Dow Jones officially dropped by 364.35 points as trading opened at 9:30 am on Monday, following last week’s first fall in stocks in more than a month, according to Insider. Major technology stocks like Alphabet and Amazon fell more than 2% on Friday as traders remain anxious over what the Fed will do to combat our current rates of inflation, Business Standard noted.

Financial institutions followed the decline, with JP Morgan Chase, Bank of America, and Deutsche Bank AG declining more than 2%, a significant reversal of the sector’s initial summertime rebound, the outlet reported. (RELATED: ‘Isn’t It Almost Orwellian?’: Karine Jean-Pierre Fumbles Trying To Explain Inflation Bill)

The Fed is expected to deliver another rate hike in September, likely between 50 to 75 basis points, Investing reported. Federal Reserve president James Bullard stated that he would be voting in favor of a 75 basis point hike at the meeting, an aggressive attempt to quell growing inflation, IND Money noted.