$57 billion wiped from Australian market, Wall Street route as Dow plunges 1,000 points, Nasdaq loses 5pc

The Australian share market has lost nearly $60 billion in a single day, and Wall Street has lost trillions as investors took flight amid concerns that more official interest rate hikes would not be enough to curb surging inflation.

The delayed reaction in the US came a day after the US Federal Reserve raised the federal funds rate by 50 basis points and Fed chairman Jerome Powell said there were more half-a-per-cent rate increases to come over the next couple of months.

Traders raised their bets of a 75-basis-point rise in June, even though Mr Powell all but ruled that out.

Rising interest rates, the war in Ukraine, COVID-19 lockdowns in China are all weighing on investor confidence.

The Dow Jones Industrial Average plunged 3.1 per cent, to 32,998, the S&P 500 dropped 3.5 per cent, to 4,147, and the Nasdaq plummeted 5 per cent, to 12,318, reversing yesterday’s rally.

That’s the lowest level for the Nasdaq since November 2020 and the lowest for the Dow since October 2020.

All 11 major S&P industry sectors declined, with consumer discretionary stocks leading the falls.

The VIX volatility index climbed to 31.20 points.

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