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The S&P 500 and US 100 index fell, reaching its lowest level since March 2021. The drop from yearly highs is already 21.8%. Following the U.S. market began to decline in key European markets.
The Fed raised rates at once by 75 bps, which exceeded analysts’ expectations by half a point. The benchmark S&P 500 index closed in bear market territory. This was the first time since March 2020, when the coronavirus pandemic first began; CNBC writes. All stocks in the S&P 500 declined during the trading day.
Also, not only US tech 100 stock prices but also Treasury bond prices fell amid the overall decline, bringing 10-year bond yields to their highest since March 2020. Also you can see Dow 30 stock price and Nikkey 225 stock price.
Investors continue to comprehend the sharper-than-expected inflation report Friday, as well as a rate hike from the Fed. Interest rates are rising, he said, so it’s unclear what direction the economy will take.
100 US stock index funds: what happens next?
Amid growing fears of recession shares of Boeing fell by 8.7%; Salesforce by 6.9%, and American Express by 5.2%, pulling the Dow Jones Industrial Average. Technology stocks also suffered: Tesla, Netflix and Nvidia plummeted 7%.
The tourism sector was also down. Carnival Corporation and Norwegian Cruise Line were down 10% and 12% respectively. Delta Air Lines was down minus 8% and United was down minus 10%.
The U.S. Consumer Price Index rose 8.6% last month from a year earlier, the fastest increase since December 1981. Also over the weekend, the price per gallon of gasoline topped $5, further adding to fears of rising inflation.
What does this mean for US tech 100 stock prices?
The US 100 stock market is hampered by rising rates as well as high energy and fuel prices. Concerns about high inflation translate into risks of more aggressive monetary tightening by the Fed and continued increases in dollar interest rates.
The subject of inflation in the U.S. has come to the forefront in all business media, which only increases the nervousness of market investors about it. The situation with the Consumer Price Index and producer prices could be partly corrected by the decline in oil prices due to a reduction in demand in the recession. but it is not a prospect for the next few days.
Markets have ignored the inflation problem long enough. However, it has long been noticeable that not just one-time elements of the consumer price index began to rise, but its stable components. The latest statistics have simply become a trigger, which is amplified by the effect of the Fed’s balance sheet reduction that has begun.
Today it is very important to be cautious when making new investment decisions. So far, the bearish trend in the market continues, and no one can predict how long it will last.