The New York Stock Exchange closed lower on Monday as concerns that rate hikes decided by the US Federal Reserve (Fed) could cause the economy to slow down pushed the indices further into the bear market or bear market zone.
The Dow Jones Index fell -1.11%, or 329.6 points, to 29,260.81 points.
The broader S & P-500 fell 38.19 points, or -1.03%, to 3,655.04 points.
The Nasdaq Composite on the other hand fell by 65 points (-0.60%) to 10,802.92 points.
After two weeks of losses on the equity markets, the Dow confirmed to enter bearish territory since the beginning of January.
The S&P 500 meanwhile has given up on gains made over the summer after the Fed indicated last Wednesday that its rates could peak at 4.60% in 2023 and that it did not expect any cuts before 2024.
“Investors are throwing in the towel,” said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma.
“It is because of the uncertainty surrounding where Fed rates could peak. Will it be 4.6%? Will it be 5%? Will this point be reached in 2023? “
Investor confidence was also hurt by uncertainty in the foreign exchange market as the British pound fell to its lowest level since the UK’s switch to the decimal system in the early 1970s during the session.
This has further increased volatility as markets fear a global recession. The volatility index approached its three-month high during the session.
Rising stocks like Amazon.com, Apple or Tesla have allowed Nasdaq to limit its losses.
Casino operators Wynn Resorts, Las Vegas Sands and Melco Resorts & Entertainment for their part jumped from 12% to 25%, driven by Macau’s announcement of a reopening of the industry to tourists from mainland China.
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