© Reuters.
Investing.com – The market has now been hit by a violent wave of bloody downturns that has hit everyone following the release of employment and inflation data.
Markets appear to reevaluate the Fed’s next move regarding the expected rate hike, after the Federal Reserve got the green light for further tightening to contain inflation.
Cryptocurrency
Cryptocurrencies lost over $ 50 billion in minutes, bringing the market cap of the cryptocurrency market below $ 900 billion to $ 880 billion.
Bitcoin fell 4% near $ 18,000 levels, bringing its market value to nearly $ 350 billion, while it fell more than 7% to levels near $ 1,200.
The currencies of Binance Coin, Ripple, Cardano, Solana, Doge Coin, Polka Dot, Polygon Matic, and Sheba Inu fell by rates of between 5 and 10%, excluding these trading moments on Thursday.
Wall Street
Tech stocks fell 320 points, or 3%, to 10,100 points.
The Standard & Poor’s 500 Index fell more than 80 points, or 2.3%, to 3495 points.
It dropped by 2% to 28700 levels, or 520 points.
gold
During these moments, it lost nearly $ 30 an ounce, dropping to levels close to $ 1,645 an ounce, down 1.7%.
The US dollar lost nearly $ 30, or 1.8%, to levels close to $ 1,643.86 per ounce.
Dollar and bonds
The American rose in these moments, approaching the 20+ year peak, to approach the 114 levels, after jumping to the 113.92 point.
The 10-year US Treasury yield rose to 4.046%, surpassing the last 14-year high of 2008.
In parallel, the two-year yield jumped close to the highest level of the last 15 years, reaching levels of 4.5%.
oil
On the other hand, oil has given up on its morning gains with the dollar index rising violently as the rising dollar pushes up the costs of buying, insuring and transporting petroleum products to consumers.
US light crude NYMEX fell 0.5% during these trading times today, Thursday, to levels below $ 87 a barrel, and the record moved down to $ 92 a barrel levels.
interest rates
In an analysis published in Saudi Investing, economist, Ghaith Abu Hilal, said that if inflation data were released high, the markets would mostly exclude 50 basis points from their bets.
Abu Hilal added that expectations will be limited to a 75bp hike and we will see betting start on a 100bp hike.
To read the full analysis:
According to The Fed’s follow-up tool goes to expectations The Fed will raise interest rates by 75 basis points at its next meeting.
“Not only will the Fed hike rates by 75 basis points next month, but there is now a chance it will increase rates by another 75 basis points in December,” said Chris Zacarelli, the CIA’s chief investment officer.
storm data
Data released Thursday by the Bureau of Labor Statistics showed an 8.2% year-over-year increase in September, above expectations of 8.1%, but slowing from the 8.3% reading of August.
It increased – net of food and energy prices – by 6.6% in September compared to the same period last year, the highest level since 1982, and by 0.6% compared to August, while a increase of only 0.4%.
The inflation report reinforces the possibility that the Federal Reserve will direct a further 75 basis point interest rate hike at its November monetary policy meeting, especially after last week’s employment report which showed the resilience of the labor market in the face of policy tightening.
Thursday’s data showed that the number of jobless claims increased by 9,000 in the week ending October 8 to 228,000, up from the previous week’s unrevised number of 219,000 and with expectations of 225,000.
The average number of the last four weeks (which is the most accurate measure of the labor market trend) has increased by 5 thousand applications – from the previous week’s average of 206.5 thousand – to reach 211.5 thousand.
