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US English

US stock selloff pushes all sectors into the red

By Joseph Toppe

20:23, 16 June 2022

New Reality
US Federal Reserve’s largest hike in 28 years jars investors - Photo: Getty Images

A day after the US Federal Reserve announced the largest interest rate hike since 1994, a frenzied selloff has sent the Nasdaq 100 (US100) and the S&P 500 (US500) to their lowest points of the year.

Piero Cingari, analyst, says: “The stock market is experiencing another major selloff, with all sectors in the red as the S&P and Nasdaq record new year-to-date lows.”

"The stock market remains in a phase of generalised risk aversion, but soon investors will adapt to this new reality and differentiate between sectors (consumer staples, utilities, and healthcare) that do well in recessions,” he continues. “Also, companies with strong fundamentals offer stable dividends and can handle higher interest rates.”

Wall Street today: Nasdaq, S&P sink to new lows, Dow drops 741 points

On Thursday, the Dow Jones Industrial Average (US30) lost 2.42%, while the Nasdaq 100 (US100) dipped 4.02%, and the S&P 500 (US500) fell 3.25%.

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US Tech 100 Summary

Past month: -6.30%

Past 3 months: -21.19%

Year to date: -31.82%

Past year: -21.44%

Nasdaq 100 (US100) price chart

The US 500 Summary

Past month: -8.74%


14,772.40 Price
+1.550% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0039%
Overnight fee time 21:00 (UTC)
Spread 1.8


33,107.70 Price
+0.490% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0039%
Overnight fee time 21:00 (UTC)
Spread 2.2


4,261.80 Price
+0.900% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0039%
Overnight fee time 21:00 (UTC)
Spread 0.8


17,279.30 Price
+0.340% 1D Chg, %
Long position overnight fee -0.0246%
Short position overnight fee 0.0027%
Overnight fee time 21:00 (UTC)
Spread 5.0

Past 3 months: -16.88%

Year to date: -23.07%

Past year: -13.15

S&P 500 (US500) price chart

FOMC meeting review: Rate hike 0.75%

The Federal Open Market Committee met on Wednesday, 15 June to discuss the current state of the US economy and to announce further interest rate hikes of 0.75% to control inflation.

Cingari says: “The central bank reported inflation for the current year has been raised to 5.2%, up from 4.3% in March, while growth has been cut to 1.7%, down from 2.8% in March.”

“This is stagflation (low or no growth coupled with high inflation) in the economy, with the Fed opting for robust and persistent rate hikes to bring inflation back to target,” he continues.

“But the economy needs to slow down, and the job market needs to rebalance, which will cause the unemployment rate to rise in the coming months.”


Markets in this article

US Tech 100
14772.4 USD
225.9 +1.550%
US 500
4261.8 USD
37.9 +0.900%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

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