New slump for Wall Street earlier in the week, continuing to sell off as it closed on Friday, as investors worry that rising inflation will force the US Federal Reserve to become more “aggressive” at its meeting this week.
All three of Wall’s top performers had their worst performance since January last week, as new US inflation data showed it had climbed 8.6% to a new 40-year high, raising concerns. that the Fed could lead the US economy into recession by tightening its monetary policy.
Barclays economists estimate that the US Federal Reserve may raise interest rates by 75 basis points at the monetary policy meeting on June 14-15.
As they mentioned, they do not share the market expectation for an increase of interest rates by 50 bp. next week, noting that “the Federal Reserve now has reason to surprise the markets with a more aggressive increase “.
“The climate has changed dramatically, as market participants have realized that there is a risk of a food crisis due to the war in Ukraine, while China could implement and lift the lockdown regime for months to deal with the spread of coronavirus, causing Recession is now a very likely option as the only option to “neutralize demand and inflation,” said Peter Garnry, an analyst at Saxo Bank.
In this climate, the industrial Dow falls by 1.9% or 600 points to 30,790, while the S&P 500 falls 2.5% to 3,800 and is in bear market area after falling more than 20% from its all-time high in early January. The limit for the bear market is 3,837.25 points.
The technically weighted Nasdaq records the largest losses with a first around 3% at 10,990 points.
From 30 shares In the industrial index, only 3M is moving with marginal gains, while the remaining 29 are in the “red”, with the biggest losses being recorded by Boeing, which slips more than 6.5%, followed by Chevron at -4.5% and Salesforce at -4.25%.
14% drop for Coinbase’s share, which is being swept away by -13% of Bitcoin, which pushes down the other cryptocurrencies, with the result that the total capitalization of the cryptocurrency market falls below the level of 1 trillion. dollars for the first time since the beginning of 2021.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
