Dow Tumbles Nearly 500 Points as Nike Guidance Spooks Investors
The Dow Jones Industrial Average fell almost 500 points today as the bear market recovery stalled. Stocks enjoyed a nice week last week and some investors wondered if the market had bottomed and was finally turning the corner but it looks like there could still be selling pressure ahead.
After all, many experts now expect some kind of recession to occur later this year or early next year, as inflation has created a problem for the Federal Reserve, which has been raising interest rates rapidly to bring down consumer prices. Typically, when the Fed becomes very hawkish it can hurt the economy because higher interest rates raise the cost of debt and slow overall economic activity.
One stock today hurt the Dow more than any other, not only because of the broader market but also because of company-specific news.
Source Fool.com
