Stock market dips as traders react to historic Fed interest hike

The Dow dropped to its lowest point of the year and fears of a recession are growing.
1:22 | 09/24/22

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:

{{nextVideo.title}}

{{nextVideo.description}}

Skip to this video now

Now Playing:

{{currentVideo.title}}

Comments
Related Extras
Related Videos
Video Transcript
Transcript for Stock market dips as traders react to historic Fed interest hike
QUESTION IS, IS THIS A TURNING POINT FOR THE COUNTRY? ERIELLE. >> REMARKABLE SCENES THERE IN IRAN. LAMA HASAN FOR US, THANK YOU. >>> NOW TO THAT WILD WEEK ON WALL STREET. THIS MORNING FEARS OF A RECESSION ARE GROWING. THE DOW DROPPING TO ITS LOWEST POINT OF THE YEAR. SO WHAT DOES THIS MEAN FOR THE ECONOMY AND FOR YOUR MONEY? ABC'S SENIOR BUSINESS AND ECONOMICS CORRESPONDENT DEIDRE BOLTON IS HERE NOW. GOOD MORNING, DEIDRE. >> Reporter: GOOD MORNING, ERIELLE. IT'S BEEN A BRUTAL WEEK IN THE MARKETS. JUST YESTERDAY IF YOU LOOKED, THE DOW DROPPED NEARLY 500 POINT, ITS LOWEST LEVEL SINCE NOVEMBER 2020. ALL OF THIS RAISING CONCERNS FROM INVESTORS AND ECONOMISTS ABOUT WHETHER OR NOT WE'RE HEADED INTO A GLOBAL RECESSION. WORRIES OBVIOUSLY SHOWING UP IN THE STOCK MARKET SHOWING UP IN THE ENERGY MARKETS, AS WELL. U.S. BENCHMARK OIL TUMBLING BELOW $80 A BARREL ON FRIDAY FOR THE FIRST TIME SINCE JANUARY. THESE ARE ON CONCERNS THAT THE GLOBAL ECONOMY BASICALLY IS ALREADY HERE ACCORDING TO SOME. NOW, ON WEDNESDAY, THE FED RAISED RATES BY ANOTHER 75 BASIS POINTS. HIGHER RATES MEANS ALL LOANS ARE MORE EXPENSIVE. 30-YEAR MORTGAGE DOUBLE THE RATE THAT IT WAS IN JANUARY, AND THE NATIONAL CREDIT CARD RATE IS NOW AROUND 18%. THIS IS THE ONE-TWO PUNCH MAKING SO MANY INVESTORS ANXIOUS. PEOPLE ARE DEALING WITH SIGNIFICANTLY HIGHER FOOD AND RENT PRICES. AT THE SAME TIME AS THEY FACE THESE HIGHER BORROWING COSTS, THERE IS ONE SMALL SILVER

This transcript has been automatically generated and may not be 100% accurate.

{"duration":"1:22","description":"The Dow dropped to its lowest point of the year and fears of a recession are growing.","mediaType":"default","section":"ABCNews/GMA","id":"90421571","title":"Stock market dips as traders react to historic Fed interest hike","url":"/GMA/News/video/stock-market-dips-traders-react-historic-fed-interest-90421571"}