US Markets Fall After Federal Reserve System’s Chairperson Speech
After US Fed chairperson Jerome Powell’s Jacqueline Hole speech, Wall Street saw a huge drop in yesterday’s trading market. Nasdaq also faced the biggest fall since June.
The declines in each of the 3 main US indices exceeded 3%. According to Jerome Powell, the Federal Reserve System will keep raising interest rates to fight inflation.
The hopes of loosening US monetary policy appeared to be crushed as a result of such a signal from the US central bank, and US markets were flat.
The Nasdaq experienced the most decline out of the three US indices in yesterday’s trading. Yesterday, the Nasdaq experienced its worst decline since June 16.
Jerome Powell stated in his speech yesterday that until inflation is under control, the US economy will need a strict monetary policy.
As a result, we must be ready for slow economic development, a poor employment market, and a downturn in business.
Investors anticipate that the US Fed will raise interest rates further at its upcoming meeting. Regarding the magnitude of the climb, people are divided, nevertheless.
Some predict a 50 basis point hike in interest rates at the next Fed meeting. Nevertheless, experts predict that this increase might be 75 basis points.
The S&P 500 index faced a decrease in all of its sectors during yesterday’s trading.
In this as well, IT fell by 3.9%, while the Consumer Discretionary Index and Communication Services fell by 3.9% and 4.3%, respectively.
The S&P 500 index dropped 141.46 points, or 3.37 %, in yesterday’s trading to close at 4,057.66. The Nasdaq, on the other hand, dropped by 497.56 points, or 3.94 %, to end the day at 12,141.71.
The Dow Jones, on the other hand, dropped 1,008.38 points, or 3.03 %, to settle at 32,283.40.