Wall Street Falls, Tech Stocks Fall

NEW YORK, KOMPAS.com – Bursa Stocks New York United States or Wall Street closed down sharply at the end of trading Monday (13/6/2022) local time. Sharp decline triggered by recession fears ahead of appointment announcement interest rate The Fed this week.

The S&P 500 fell 3.88 percent to 3,749.63, and the Dow Jones Industrial Average (DJIA) also fell 876.05 points, or 2.79 percent, to close at 30,516.74. Meanwhile, the Nasdaq Composite fell the most, namely, 4.68 percent and closed at 10,809.23 positions.

The decline in the index on Wall Street was in line with the Fed’s plan to raise its benchmark interest rate by 0.75 percent this Wednesday, to suppress inflation. At the beginning of the week, investors continued to digest the US inflation report which reached 8.6 percent, or higher than expectations.

Read also: 5 Most Cuan Stocks a Week, There’s Indosat to GoTo

“Anyone who expects market conditions to be bullish, can’t find anything to hold on to right now amid rising interest rates, and the uncertain direction of the economy,” said Jack Ablin, founding partner of Cresset Capital, citing CNBC.

Boeing, Salesforce and American Express plunged 8.7 percent, 6.9 percent and 5.2 percent, respectively, and weighed heavily on the DJIA index. While from stock tech, Netflix, Tesla and Nvidia fell more than 7 percent and pushed the Nasdaq to touch a new low since November 2020.

In addition, transportation stocks also slipped earlier in the week, with Carnival Corporation and Norwegian Cruise Line dropping by about 10 percent and 12 percent, respectively. Delta Air Lines also fell more than 8 percent, while United fell about 10 percent.

All major sectors on the S&P 500 index slumped into the red, led by energy stocks dropping more than 5 percent. From the consumer sector, communication services, information technology, to utilities also fell more than 4 percent.

“The dramatic move lower suggests there is a lot of investors taking profits or repositioning their portfolios, and may signal that the market is currently in a capitulation stage,” said Jeff Kilburg, chief investment officer at Sanctuary Wealth.

A lot of selling, pushing short-term interest rates soared. The 10-year US Treasury rose more than 20 basis points higher to above 3.3 percent, as investors worried that the Fed would be more aggressive in curbing inflation. Meanwhile, the 2-year US Treasury yield rose about 30 basis points to around 3.3 percent.

Read also: Ahead of CPI Announcement, Wall Street Ends in Red Zone

Get updates news of choice and breaking news every day from Kompas.com. Let’s join the Telegram group “Kompas.com News Update”, how to click the link https://t.me/kompascomupdate, then join. You must first install the Telegram application on your cellphone.–