After 'U-Turn on Easy Street,' Dow Has Worst Week of 2021

S&P also falls more than 1%
By Newser Editors and Wire Services
Posted Jun 18, 2021 3:06 PM CDT
After 'U-Turn on Easy Street,' Dow Has Worst Day in Months
In this photo provided by the New York Stock Exchange, trader Ashley Lara works on the trading floor, Friday, June 11, 2021.   (Nicole Pereira/New York Stock Exchange via AP)

The day started ugly on Wall Street and ended in the same fashion. The Dow fell 533 points, or 1.5%, to 33,290; the S&P 500 fell 55 points, or 1.3%, to 4,166; and the Nasdaq fell 130 points, nearly 1%, to 14,030. It was the market's worst week since October, with a decline of about 3.5%, reports CNBC. The glum mood began after a Fed official went on CNBC and predicted that the agency would begin raising interest rates next year, earlier than previous estimates of 2023.

It's an acknowledgment that a rebounding economy with near-record prices for homes and stocks may not need super low rates much longer, per the AP. A recent burst of inflation may also be increasing the pressure, but any pullback in Fed support would be a big change for markets, which have been feasting on ultra-low rates for more than a year. It marked a “U-turn on Easy Street,” as strategists at BofA Global Research described it.

(More stock market stories.)

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