After two weeks of steady losses on the US stock market, The Dow Jones index confirmed that it has been in a bear market since the beginning of January.
The S&P 500 index had confirmed in June that it was in a bear market, and on Monday ended the session below its mid-June low, deepening this year’s slump.
With the Fed’s signal last Wednesday that high interest rates could last through 2023, the S&P 500 has given up the last gains of a summer rally.
The Fed raised interest rates again last Wednesday by three quarters of a point, to 3% and 3.25%, while the Bank of England yesterday raised rates by 50 basis points, to 2.25%.
Investors fear a sudden cooling of economic activity due to the rise in money.
Today’s session also highlighted the 4% drop in the British pound against the dollar, which is also hitting highs against the euro.
The aggressive policy of raising interest rates by the Fed has contributed to the strengthening of the dollar against other currencies, while the pound has fallen after last week’s tax cut announcement in the UK.
international bags
The international stock markets today registered a negative trend in the main assets and oil traded lower in the reference markets.
The main stock markets in the Asia-Pacific region recorded negative results, according to the Bloomberg news agency.
The Japanese Index Nikkei bass 2.7%; Hong Kong 0.4%; South Korear 3%; Taiwan 2.4%; Y Chinese 1.2% in its Shanghai index and 0.4% in the Shenzhen.
In Europe, the main stock markets operated with losses: London lost 0.2%; Paris 0.2%; Frankfurt 0.4%; and Madrid 0.8%, while Milan rose 0.8% instead.
The Saint Paul bagin its main index, bovespa, descended 2.2% and stood at 109,793 points.
Source: Ambito
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