Fed aftermath weighs on Wall Street

Frankfurt Economic worries about shattered hopes of an end to US interest rate hikes drove Wall Street into the red on Friday. The Dow Jones index of blue chips and the broader S&P 500 each fell about 1.5 percent to 32,699 and 3833 points, respectively. The Nasdaq technology exchange index lost just as much to 10,657 points.

At its most recent meeting, the US Federal Reserve decided to slow down the pace of interest rate hikes. At the same time, she emphasized that the fight against inflation is not over yet.

“There is concern that if the Fed continues to hike rates, the economy will continue to slow,” said Robert Pavlik, portfolio manager at wealth manager Dakota Wealth. The US purchasing managers’ indices published on Friday would have further strengthened the fears. “The speed at which the numbers are declining is worrying.”