S&P 500 closes at 2022 lows, Wall Street selling resumes

NEW YORK, Sept. 29 (Xinhua) — US stocks plunged Thursday as Wall Street resumed selling.

The Dow Jones Industrial Average fell 458.13 points (1.54%) to 29,225.61. The S&P 500 dropped 78.57 points (2.11%) to 3,640.47, marking a new year close. The Nasdaq Composite Index fell 314.13 points, or 2.84%, to 10,737.51.

The S&P 500’s 11 major sectors all ended in the red, with utilities and consumer goods leading the losses, down 4.07% and 3.38% respectively.

Apple shares fell 4.9% on Thursday after Bank of America analysts cut the stock to neutral from buy.

On the economic front, the U.S. Department of Labor reported that the country’s initial jobless claims, a rough way of measuring layoffs, fell from 16,000 to 193,000 in the week ending Sept. 24.4 The lowest level of application since the end of the month has been solidified. Expectations that the Federal Reserve will continue its rate hike campaign.

After a period of relentless decline, Wall Street rebounded on Wednesday as the Dow closed above 500 points.

“We don’t believe Wednesday’s muted market mood signals the end of the recent rally in volatility and risk-off sentiment,” UBS analysts wrote in a note on Wednesday.

“For a more sustained rally, investors need to see compelling evidence that inflation will be contained and central banks will become less hawkish.” “In our view, this turn is still some time away.”

US stocks took a hit this year amid fears that the US Federal Reserve’s aggressive tightening policy could plunge the economy into recession.