Stock futures fell sharply on Thursday as investors worried that the Federal Reserve’s latest policy update would send the economy into a slump.
Dow Jones Industrial Average futures fell 240 points, or 0.7%. The S&P 500 futures fell 0.9%, while the Nasdaq 100 futures fell 1.1%.
Tesla stock fell more than 2% in premarket trading after CEO Elon Musk sold a portion of his stake in the company.
Following the most recent Fed rate hike, Treasury yields fell below 3.5% on the benchmark 10-year Treasury note.
The Dow fell 142 points on Tuesday, while the S&P 500 fell 0.61% and the Nasdaq Composite fell 0.76%.
The major indexes fell as investors digested the Federal Reserve’s latest comments following a hike in the overnight lending rate. The Fed said it will keep raising rates until 2023, with a higher-than-expected terminal rate of 5.1%. With Wednesday’s half-point increase, the rate target range is now 4.25% to 4.5%, the highest in 15 years.
On Thursday, European stocks and US futures fell after the Federal Reserve’s first pause in interest rate hikes since June was overshadowed by forecasts of slowing but sticky inflation.
The regional Stoxx Europe 600 fell 1.1% in early trading, while the FTSE 100 fell 0.7%. Contracts tracking Wall Street’s benchmark S&P 500 and the tech-heavy Nasdaq 100 fell 1.1% and 1.2%, respectively.
The drops came after US inflation slowed in November for the second month.
ARK purchased 61,537 shares for the ARK Innovation fund (ARKK), 10,066 shares for the ARK Autonomous Technology & Robotics ETF (ARKQ), and 3,259 shares for the ARK Next Generation Internet ETF (ARKQ) (ARKW). After Zoom Communications (ZM) and Exact Sciences, Tesla is the third largest holding in ARK’s suite of investment products (EXAS).
After a challenging year in which investors are concerned that Musk, as CEO, has turned his attention away from the company to manage Twitter, Wood’s dip-buying spree comes at a challenging time for Tesla.