The New York Stock Exchange fell again on the 21st (local time) on the hawkish stance of the US Federal Reserve (Fed).
The New York Stock Exchange’s Dow Jones Industrial Average closed at 30,183.78, down 522.45 points (1.70%) from the previous day.
The Standard & Poor’s (S&P) 500 index fell 66.00 points (1.71%) to 3,789.93, and the Nasdaq technology stock index fell 204.86 points (1.79%) to close at 11,220.19, respectively.
At the regular Federal Open Market Committee (FOMC) meeting in September, the Fed took three huge steps (0.75 percentage points at a time) to raise the benchmark interest rate to 3.00 to 3.25 percent, the highest since January 2008. during the financial crisis rise to
Although the market is already anticipating the measure, the prospect of continued aggressive rate hikes and the base rate remaining at a high level in the future appears to have cooled investor sentiment.
In the dot chart released by the Fed (an indicator showing FOMC members’ future interest rate forecasts), the median base rate forecast has risen to 4.4% at the end of this year and 4.6% at the end of next year , respectively.
Fed Chairman Jerome Powell acknowledged the possibility of a future recession, saying the rate hikes “reduce the likelihood of a soft landing.”
The main New York Stock Exchange indexes all fell after the announcement of the results of the FOMC meeting and then reversed their rise after Chairman Powell’s comment that “rate hikes will be slowed down one day”, but eventually plunged again at the end of the meeting. the day.