The Dow Jones Industrial Average closed lower on Friday (September 23) as investors continued to sell stocks amid recession fears. After the Federal Reserve (Fed) insisted on tightening monetary policy to curb inflation.
Additionally, the release of the Purchasing Managers’ Index (PMI), which included the basic US manufacturing and services sectors, contracted for the third month, dragging the market further down.
The Dow Jones Industrial Average closed at 29,590.41, down 486.27, or -1.62%, the S&P500 closed at 3,693.23, down 64.76, or -1.72%, and the Nasdaq closed at 10,867.93, down 8,888.8% or -198. .
in this week the Dow was down 4 percent, the S&P500 was down 4.6% and the Nasdaq was down 5.1%.
All 11 stocks of the S&P 500 index closed in negative territory. It was led by the energy and luxury segments, which fell 6.75% and 2.29 percent respectively.
The Dow fell to its lowest level since November. 2020, after falling more than 800 points intraday and falling more than 20 percent from the all-time high of 36,799.65 on January 4 that put the Dow into a twist.
Investors sell stocks to mitigate risk. because there is growing concern that the Fed’s tightening of aggressive monetary policy will push the economy into recession.
The Fed raised interest rates by 0.75% on Wednesday (September 21), for the third time in a row this year. This puts the Fed’s short term interest rate in the range of 3-3.25% in an attempt to curb inflation.
Fed Chairman Jerome Powell confirmed that the Fed aims to achieve price stability targets The Fed is expected to rely on a continuous tightening of monetary policy. and will cause economic expansion to be below trend and unemployment higher
investors expect the Fed to raise interest rates another 0.75% at its monetary policy meeting in November. and increased by 0.50% in December
In addition, the market was also under pressure from the S & P. Global revealed that the Purchasing Managers’ Index (PMI) combines the basic manufacturing and service sectors in the USA. It rose to 49.3 in September, the highest level in three months, from 44.6 in August.
