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Dow Jones Falls As Recession Fears Rise; Elon Musk Lashes Out Over Recall; Bitcoin Rallies, Coinbase Falls

The Dow Jones Industrial Average fell late as recession fears rose following the Federal Reserve meeting. Tesla (TSLA) CEO Elon Musk verbally blasted a mass recall. Coinbase (COIN) and Riot Blockchain (RIOT) fell, even as Bitcoin rallied. Eli Lilly (LLY) popped on an upgrade.

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Meanwhile, a trio of stocks near buy points were showing impressive relative strength. J.M. Smucker (SJM), Eastern Bankshares (EBC) and HealthEquity (HQY) all impressed.

Volume was mixed, rising on the Nasdaq but slipping on the New York Stock Exchange, according to early data.

The yield on the benchmark 10-year Treasury note surged 19 basis points to 3.7%. West Texas Intermediate crude oil rose 0.7%, closing at $83.53 per barrel.

Stocks Hit Amid Recession Fears

Dow Jones and other stocks are suffering a hangover following the latest Federal Reserve meeting Wednesday. The Federal Open Market Committee, led by Fed Chairman Jerome Powell, raised rates by 75 basis points.

The “dot plot” also forecast the Fed funds rate would reach 4.6% next year before the tightening comes to an end.

Nomura senior U.S. economist Rob Dent said the latest Fed move “really underscores the likelihood” of recession within the next 12 months.

“Global equities are struggling as the world anticipates surging rates will trigger a much sooner and possibly severe global recession,” Oanda senior market analyst Edward Moya said in a note to clients. “The Fed has succeeded in convincing markets that they will remain aggressive with fighting inflation and that has many expecting another 75 basis point rate increase in November.”

Dow Jones Gains, Nasdaq Falls, Small Caps Dive

The Dow Jones fell late closing down 0.4%. The Nasdaq was struggled most out of the indexes, dropping 1.4%. The S&P 500 also lagging, giving up 0.8%.

The S&P 500 sectors were mostly negative. Health and communication services were the only gainers while financials and consumer discretionary struggled the most.

Small caps were also mauled by the bears, with the Russell 2000 ending the day 2% lower.

The Innovator IBD 50 ETF (FFTY), a bellwether…

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