Wall Street sees deepest daily losses since 2020

STORY: Wall Street slid on Friday to its deepest daily losses since 2020, as Amazon slumped following a gloomy quarterly report, and as the biggest surge in monthly inflation since 2005 spooked investors already worried about rising interest rates.

Amazon shares tumbled 14.05% in its steepest one-day drop since 2006, leaving the widely held stock near two-year lows. Late on Thursday, the e-commerce giant delivered a disappointing quarter and outlook, swamped by higher costs.

Apple, the world's most valuable company, dropped 3.66% after its disappointing outlook overshadowed record quarterly profit and sales.

The S&P 500 logged its largest one-day decline since June 2020. The Nasdaq's decline was its largest since September 2020.

Downbeat results and worries about aggressive monetary policy tightening by the Federal Reserve have hammered megacap technology and growth stocks this month.

The Fed is set to meet next week, with traders betting on a 50-basis-point rate hike to combat surging inflation.

Nancy Daoud, Private Wealth Advisor for Ameriprise Financial said there is still uncertainty about whether there will be the number of rate hikes the Fed has predicted.

"They said maybe 11 or 12 at maybe a quarter of a percent each. However, I'm not quite sure, the market doesn't have a lot of confidence in that. And if the Fed does not do this properly, methodically, and ends up raising rates too fast and too high, it could actually cause a recession. So, that's what's got the market all jittery, quite frankly."

The Dow Jones Industrial Average fell 2.77% while the S&P 500 declined 3.63% and the Nasdaq was down 4.17%.

Signs of aggressive monetary policy tightening, the Ukraine war and China's COVID lockdowns have fueled fears of an economic slowdown.

Data on Thursday showed the U.S. economy unexpectedly contracted in the first quarter.

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