Stocks Plummet with Apple at Helm of Selloff

Stocks resumed their 2022 selloff on Thursday, sending the S&P 500 to a new low for the year and its lowest intraday level since 2020, as fears swirled that a recession won’t stop the Federal Reserve from raising interest rates.

The Dow Jones Industrials staggered 458.13 points, or 1.5%, to end Thursday at 29,225.61.

The selloff was broad-based and was led by Apple, which tumbled as a major investment bank downgraded the one-time bear market outperformer. The stock closed down 4.9%.

The S&P 500 dipped 78.57 points, or 2.1%, to 3,640.47, in a new closing low for the year. It also fell to a new 2022 intraday low of 3610.40 during the session.

The NASDAQ Composite plunged 314.13 points, or 2.8%, to 11,737.51.

Wednesday’s rally put the major averages on pace for a losing week and their worst month since June. The NASDAQ is leading the monthly losses, down 9.1%, while the Dow is set to close 7.3% lower and S&P is on pace to finish 8% lower

A stronger-than-expected jobless claims report didn’t help sentiment, building on the notion that the Federal Reserve will keep doing aggressive rate hikes to fight inflation without concern it’s going to hurt the labour market.

Treasury prices lost ground, raising yields to 3.77% from Wednesday’s 3.73%. Treasury prices and yields move in opposite direction.

Oil prices lost 68 cents to $81.47 U.S. a barrel.

Gold prices sank 90 cents to $1,669.10 U.S. an ounce.