The Dow Jones Industrial Average closed lower on Friday (Sept. 23) as investors continued to sell stocks amid recession fears. After the Federal Reserve (Fed) insisted on tightening monetary policy to curb inflation.
In addition, the release of the Purchasing Managers’ Index (PMI), which included the US manufacturing and primary services sectors, contracted for a third month, further dragging the market lower.
- The Dow Jones Industrial Average closed at 29,590.41, down 486.27 or -1.62%.
- The S&P 500 index closed at 3,693.23, down 64.76 or -1.72%.
- The Nasdaq index closed at 10,867.93, down 198.88, or -1.80%.
The Dow was down 4% this week, the S & P500 was down 4.6% and the Nasdaq was down 5.1%.
All 11 stocks in the S&P 500 index closed in negative territory. It was led by the energy and luxury segments, which fell 6.75% and 2.29% respectively.
The Dow fell to its lowest level since November. 2020, after falling over 800 points intraday and more than 20% from a record close of 36,799.65 on January 4 that put the Dow in the doldrums.
Investors sell stocks to mitigate risk. because there is growing concern that the Fed’s aggressive monetary tightening will push the economy into recession.
The Fed raised interest rates by 0.75% on Wednesday (September 21), for the third consecutive time this year. This puts the Fed’s short-term interest rate in the 3-3.25% range in an attempt to curb inflation.
Fed chairman Jerome Powell reiterated that Fed aims to achieve price stability targets The Fed should rely on continued tightening of monetary policy. and will cause economic expansion to be below trend and higher unemployment
Investors Expect The Fed will raise interest rates by another 0.75% at its November monetary policy meeting. and rose 0.50% in December
Furthermore, the market has also been under pressure from S&P. Global has revealed The Purchasing Managers Index (PMI) combines the main US manufacturing and services sectors. It rose to 49.3 in September, the highest level in three months, from 44.6 in August.
by InfoQuest News Agency (September 24, 65)
tag: Dow, New York stock market
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