It is the worst trading day since June 2020, reports The Wall Street Journal. All three of the main indexes on the market in New York had their worst day so far this year. The Dow Jones industrial index fell 3.94 percent, while the broader S&P 500 ended the day 4.33 percent lower. The biggest fall was on the technology-dominated Nasdaq stock exchange, where the main index was down a whopping 5.16 per cent at closing time. Still high price growth – I’m not surprised, considering what you got from inflation figures today and the subsequent interest rate movements. That is what scares the markets, says Olav Chen in Storebrand Asset Management to E24. Strong price growth and fear of interest rate increases have left a clear mark on the financial markets this year. On Tuesday morning, the official figures came out which showed a price increase of 8.3 per cent from August last year to the same month this year. It was lower than the two previous months, but higher than expected and far above the central bank’s inflation target of keeping price growth at 2 per cent. This is the last inflation figure before the Federal Reserve’s interest rate meeting next week. The market expects a so-called triple increase, that is to say that the key interest rate will be raised to 0.75 percentage points. Think it will take time to bring down inflation Mike Loewengart at Morgan Stanley says Tuesday’s inflation figures are “a powerful reminder of the long way that remains before we are down to earth again”. – Hopeful expectations that we are on a downward curve and that the Fed will let up on the gas may have been a little premature, says Loewengart according to CNBC. Chen also believes that it will take time before price inflation comes down again. – Core inflation has not yet peaked. It will take time before inflation comes down, considering how tight the labor market is, he says.
ttn-69
Stock market crash in the USA – biggest decline in over two years – news Urix – Foreign news and documentaries
