Stock markets swarm after recovery day

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Stock markets swarm after recovery day

NEW YORK, New York - A day after investors breathed a sigh of relief, sellers swarmed the U.S stock markets on Thursday, giving free haircuts to buyers who bore into the market on Wednesday.

Carnage was everywhere at the end of the day, with all major indices bearing heavy losses. The U.S. dollar was sold sharply against the euro and British pound.

Adam Crisafulli of Vital Knowledge said in a note to clients that the gloom is back, and it's even worse than ever. A lot of items are contributing to thursday's malaise including the very hot German CPI, more hawkish remarks from the Fed and ECB Mester doesn't think policy is in restrictive territory, as well as the defiant tone of the Truss government when it comes to the disastrous UK fiscal plan, a drop in weekly U.S. claims back below 200 K, amongst others. Sellers took a break on Wed, but they're back in force so far today, and there isn't a bull in sight trying to defend the tape, Crisafulli wrote.

The stock market was relatively quiet at the close. The Nasdaq Composite lost a hefty 314.13 points or 2.84 percent to 10,737 at the end of the day. The 500 of Standard and Poor's dropped 78.57 points or 2.11 percent to 3,640. The Dow Jones industrials fell 458.13 points or 1.54 percent to 29,225. The U.S. dollar took a belting on foreign exchange markets. The British pound was in demand and had a surge to 1.1063 by the New York close Thursday. The euro was up to 0.9794. The Japanese yen was a fraction higher at 144.38. The Swiss franc was up to 0.9777.

The Australian dollar was slightly firmer at 0.6482. The Canadian dollar was up to 1.3703 at the end of the day. The New Zealand dollar went up by a bit to 0.5709.

In Japan, the Nikkei 225 rose 248.07 points, or 0.95 percent, to 26,422. The Australian All Ordinaries increased by 100.80 points or 1.51 percent to 6,760. In New Zealand, the S&P NZX 50 gained 80.47 points or 0.72 percent to 11,200. In Hong Kong, the Hang Seng retreated 85.01 points or 0.49 percent to 17,165, going against the trend. China's Shanghai Composite weakened by just 3.86 points or 0.13 percent, to 3,041. Stocks in Asia make broad brush gains despite the U.S. dollar reigniting.