Stocks fell sharply in early trading Friday a day after the Federal Reserve opted not to hike interest rates, as investors focus on the Fed’s worries about recent turbulence in financial markets and the health of the global economy.
The Federal Reserve held off on raising rates, which are now pegged at 0% and haven’t been increased since mid-2006, due to the recent angst caused by China’s slowdown, wild price swings in global markets and heightened volatility around the world. But it appears the Fed’s concerns about these headwinds have given investors fresh pause and has refocused attention on these new emerging threats.
In early trading, the Dow Jones industrial average, which tumbled 65 points Thursday after being up by almost 200 points after the Fed decision, was down more than 200 point, or 1.3%. The Standard & Poor’s 500 stock index fell 1% and the Nasdaq composite index dropped 0.7%.
All ten of the S&P 500 sectors were lower with energy stocks leading the losses. Oil prices dropped more than 3% as U.S. benchmark crude fell $1.56 to $45.29 a barrel.