Last night, New York stock markets showed extreme volatility on the first trading day after the Independence Day holiday amid fears of a recession.
At the New York Stock Exchange (NYSE) on the 5th (Eastern Time), the Dow Jones Industrial Average closed at 30,967.82, down 129.44 points (0.42%) from the previous day.
The Standard & Poor’s (S&P) 500 index closed at 3,831.39, up 6.06 points (0.16%) from the battlefield, and the Nasdaq index, centered on technology stocks, closed at 11,322.24, up 194.39 points (1.75%) from the battlefield.
The S&P 500 fell more than 2% at the beginning of the session and eventually ended the day with a strong move, while the Nasdaq also fell nearly 2% at the beginning of the session and then rebounded by more than 1%.
Investors are paying attention to the Federal Reserve’s June Federal Open Market Committee (FOMC) minutes, which are released this week, and the June employment report later this week.
“The story that dominates the market is the battle between inflation and recession,” said Andrew Brenner of Nat Alliance Securities in the report.
On the other hand, major European stock markets closed lower on the 5th (local time) as concerns grew that the global economy would plunge into recession.
The DAX 30 index of the Frankfurt Stock Exchange closed at 12,401.20, down 2.91% from the closing price of the previous trading day.
The London Stock Exchange’s FTSE 100 fell 2.86 percent to 7,025.47, and the Paris CAC 40 index fell 2.68 percent to 5,794.96.
The pan-European index Euro Stoxx 50 also fell 2.68% to close at 3,359.83.
“Rising fears about global economic health have driven the stock market down,” David Madden, an analyst at Equity Capital, told AFP.
“There are concerns in the market that inflation will rise, interest rates will rise and economic growth will slow down,” Madden said.
