After a sharp rollback to close the previous week, the stock showed another significant downward move during trading on Monday.
With continued sales, the high-tech Nasdaq fell to its lowest closing level since November 2020, while the Dow and S&P 500 also reached one-year lows.
The main averages observed continued weakness before closing, ending the session near the worst level of the day. The Dow fell 653.67 points or 2 percent to 32,245.70, the Nasdaq fell 521.41 points or 4.3 percent to 11,623.25, and the S&P 500 fell 132.10 points or 3.2 percent to 3 , 24.91
Traders seem to be worried that the aggressive steps of the world’s central banks to curb inflation could lead to a period of stagflation or outright recession.
An extended sell-off on Wall Street also occurred as traders awaited the release of key inflation data in the coming days.
The latest picture of inflation could affect expectations as to how aggressively the Federal Reserve plans to raise interest rates.
Energy stocks showed some of the worst market performance in the afternoon trading, falling sharply along with the price of crude oil. Oil for June delivery fell $ 6.68 to $ 103.09 a barrel.
Reflecting sales in the energy sector, the Philadelphia Oil Service index fell 10.8 percent, the NYSE Arca Oil index fell 8.2 percent and the NYSE Arca natural gas index fell 6.7 percent.
Significant weakness was also seen among airline stocks, leading to a 7 percent drop in the NYSE Arca Airline Index. After a sharp drop in the day, the index ended the session at a two-month low.
Biotech stocks also showed a significant downward trend in the day, pulling the NYSE Arca’s biotechnology index down 5.9 percent to its lowest closing level in two years.
Shares of gold, semiconductors and commercial real estate also saw significant weakness in the day, reflecting widespread sales pressure on Wall Street.
In foreign trades, stock markets in the Asia-Pacific region on Monday largely declined. Japan’s Nikkei 225 fell 2.5 percent and South Korea’s Kospi fell 1.3 percent.
Major European markets also showed significant downward movements on this day. While the French CAC 40 index fell 2.8 percent, the British FTSE 100 index and the German DAX index fell 2.3 and 2.2 percent, respectively.
In the bond market, Treasury bonds showed a marked turnaround after seeing initial weakness. As a result, the yield of the reference ten-year note, which is moving against its value, fell by 4.4 basis points to 3.079 percent after reaching a maximum of 3.167 percent.
Against the background of a calm day on the US economic front, Tuesday’s auction may be affected by the reaction to the comments of several Fed officials. Traders are also likely to follow the latest earnings news.
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