US Stocks Sink Amid Fed Rate Hike Fears
iStock/Thinkstock(NEW YORK) — Wall Street tumbled Friday amid increased fears over a Fed rate hike.
The Dow gave up 394.46 (-2.13 percent) to finish at 18,085.45.
The Nasdaq lost 133.57 (-2.54 percent) to close at 5,125.91, while the S&P 500 finished at 2,127.81, down 53.49 (-2.45 percent) from its open.
Crude oil sunk nearly 4 percent with prices hitting under $46 a barrel.
Federal Reserve: Investors are getting mixed messages from Federal Reserve officials over whether there will be an interest rate increase this month. Boston Fed President Eric Rosengren said in a speech Friday that “gradual tightening is likely to be appropriate,” but did not say if he supported a rate hike during the Fed’s September policy meeting. Fed Gov. Daniel Tarullo indicated in an interview with CNBC that he was open to discussions about one happening this year, but not necessarily this month.
Apple: Apple’s stock was down over 2 percent Friday, despite introducing the new iPhone 7 and iPhone 7 Plus this week. Investors are fretting over Apple’s decision not to put out its first weekend sales figures for the new device, which the Cupertino-based company says is because the iPhone 7 will quickly sell out. Apple has struggled with iPhone sales in the past two quarters, and normally releasing the first weekend sales boosts its stock price.
Samsung: Samsung Electronics Co., Ltd. tumbled about 4 percent after the U.S. Consumer Product Safety Commission warned consumers who have Samsung Galaxy Note7 cell phones to “power them down and stop charging or using” them. Recent news reports said that lithium-ion batteries in certain Note7 devices had resulted in fires and the Federal Aviation Administration has warned airline passengers not to use the Samsung smartphone.
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