A publication of minutes from the US Federal Reserve’s interest rate meeting in December confirmed higher interest rates in 2022, and scares investors in New York on Wednesday.
Following the announcement, the 10-year government interest rate reached today’s highest level and the S&P 500 fell sharply after the Fed’s update.
At the close of trading on the stock exchange, the Dow Jones index had fallen by 1.05 percent to 36,407.30 The S&P 500 was down 1.9 percent to 4,700.67 while the technology-heavy Nasdaq plunged 3.3 percent to 522.54.
Higher interest rates have a particularly strong effect on growth stocks. Apple fell by 2.6 percent, while Microsoft fell more by 3.8 percent. Salesforce, Nike and Adobe were also among the stocks that pulled down. Tesla fell 5.3 percent to $ 1,085.54.
The interest rate message from the central bank created fear in the market, and the fear index VIX rose 15.5 per cent.
The price of oil rose
Oil prices rose 0.1 percent to $ 77.10 per barrel. fat.
Oil futures rose sharply on Wednesday, with the US benchmark index peaking since the end of November after government data revealed a sixth consecutive week of declines in domestic crude oil supplies, along with a rise of more than 10 million barrels in gasoline stocks.
“The attraction of crude oil was a little less than expected, but we saw an eye-opening construction in gasoline and a very large construction,” Tariq Zahir, CEO of Tyche Capital Advisors, told MarketWatch.
Interest rates up
The 10-year interest rate was 1.7 per cent on Wednesday night, after a rise of 0.0465 basis points, at the same time as the 30-year interest rate also rose. In comparison, the 10-year interest rate was around 1.3 per cent a month ago.
The gold price was down 0.3 percent, while bitcoin fell 4.7 percent.
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