Biden's Magic Touch: Dow Falls 700 Points, Tumbling Below 30,000 to Lowest Level in More Than a Year

The Dow Jones Industrial Average tumbled below the key 30,000 level on Thursday as investors worried the Federal Reserve’s more aggressive approach toward inflation would bring the economy into a recession.

The Dow had rallied on Wednesday after the Fed announced its largest rate hike since 1994, but reversed those gains and then some on Thursday, tumbling to the lowest level since January 2021.

The Dow dropped 2.6%, or 810 points. The S&P 500 slipped 3.3%, while the Nasdaq Composite slid 4.1%.

The major averages entered Thursday’s session down 4.5%, 5.7% and 5.6%, respectively, for the week and well below record levels.

The Dow broke below 30,000 for the first time since Jan. 4. It first traded above that level in Nov. 2020.