[뉴욕증시] US Fed tightens, UK tax cuts drop … Dow Breaks 30,000 By MoneyS

[뉴욕증시] US Fed tightens, UK tax cuts fall … Dow falls over 30,000

The New York stock market fell as the Federal Reserve (Fed) and other global central banks continued to aggressively raise rates.

At the New York Stock Exchange (NYSE) on the 23rd (local time), the Dow Jones Industrial Average closed at 29,590.41, down 486.27 points (1.62%) from the previous trading day. The Dow closed at its lowest level since November 2020.

The Standard & Poor’s (S&P) 500 index fell 64.76 points (1.72%) to 3693.23 from the previous trading day, and the Nasdaq index, which focuses on technology stocks, fell 198.88 points (1.80%) to 18,67.93.

In August, the Federal Open Market Committee (FOMC) carried out three massive steps to raise the benchmark interest rate by 0.75 percentage points in a row, and hinted at the possibility of an additional increase of 1.25 percentage points by the end of this year.

The UK government’s announcement of a tax cut for the first time in 50 years to boost economic growth also dampened investor sentiment. The pound has hit its lowest level against the dollar since 1985. As the value of the dollar rose, the dollar index broke through 113, the highest since May 2002.

According to CMC Markets, gold, a representative safe haven asset that rises during economic downturns, fell sharply after failing to overcome the strong dollar. The price of the December contract plunged 1.5% ($25.50) from the previous trading day to close at $1655.60 an ounce. This is the lowest since April 2020.

Logistics and transport company FedEx fell 3.37% on concerns about a drop in logistics volume. Deutsche Bank, a global investment bank, expressed concerns about rising inflationary pressures and reduced logistics volume, and predicted that FedEx’s stock price could fall further.

Nike fell 1.55% on a decline in its clothing and footwear business in the Chinese market. Some analysts have suggested that Nike’s demand slowdown will continue for now.

Costco’s Total Sales fell 4.26% on the possibility of a drop in the stock price. Citigroup warned against the high valuation of Costco Whole Sales due to the preference for defensive stocks in the global economic downturn, and assessed that downward pressure on the share price would intensify in the future.

Aircraft maker Boeing fell 5.37% on news that its main customer, China Southern, recently ordered 40 planes from Airbus, not Boeing, due to worsening relations between the US and China.

Semiconductor manufacturers Nvidia and AMD fell 0.36% and 2.22%, respectively, as it is suggested that semiconductor competition with China will be inevitable due to the formation of a semiconductor alliance including the United States and major countries.

Barrons, an economic weekly, said, “The US stock market is extending its decline amid rising interest rates and is likely to fall below the June low.” The bear market extends the decline as the Fed re-emphasizes the continuation of the rate hike cycle.”

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