The broad S&P 500 index has reached its lowest level since January 2021, and we are officially in a bear market for the first time since the pandemic broke out. Technology-heavy Nasdaq still climbed the green side just before the end of trading.
Wall Street is leaving a marginal fall after today’s trading, despite tomorrow’s interest rate meeting.
This is how the three leading indices on the New York Stock Exchange went after Monday’s trading:
- The S&P 500 fell 0.37 percent to 3,735 points.
- The Dow Jones fell 0.49 percent to 30,365 points.
- The Nasdaq ended up 0.18 percent at 10,828 points.
Speed of mortgage
Fears of more aggressive interest rate hikes than expected have accelerated mortgage rates as much as they have in the stock market. The interest rate on the popular 30-year annuity loan in the US rose on Tuesday by another 10 basis points.
With that, the nominal interest rate for the loan is now 6.28% – up as much as 73 basis points in one week.
CNBC says that this has taken the inside turn in the housing market, and that the demand for loans is now at the bottom.
Calm before the storm
Tomorrow, the US Federal Reserve (Fed) will adopt the interest rate hike. Before the meeting, there is talk of triple raising. With that, the key interest rate will first be raised by 75 basis points on Wednesday night, and then again in July and then in September.
Movements
The ten-year US government bond yield was 3.477 percent at the close on Tuesday – up 7.9 basis points for the day.
The well-known VIXThe index, and as it is known as the fear index, took a direction for the better and was down 4.90 per cent at the close of trading.
The crypto market also failed to stay in the green, where bitcoin ended down 4.89 percent for the day. With that, one Bitcoin is traded for 22,125 dollars.
BrentThe oil started in green, but ended up with a fall of 3.81 percent. One barrel of North Sea oil now costs $ 117.33. At the same time is WTIoil down 1.55 percent to 106.27 dollars per. fat.
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