Uncertainty dominates the markets. Fear of further large rate hikes by the Fed are causing prices on Wall Street to shrink. In addition, technology stocks are losing significantly.
(Photo: Reuters)
New York / Frankfort Inflation and interest rate concerns pushed US stock markets lower on Friday. Investors parted with growth-dependent technology stocks in particular: the Nasdaq index dived 1.9 percent to 12,718 points. The Dow Jones index of standard values was 0.7 percent lower at 33,745 points, the broader S&P 500 fell 1.1 percent to 4236 points.
“There is a lot of individual bad news here today that is manifesting itself in a general market sell-off,” said Dennis Dick, trader at Triple D Trading. Among other things, Fed officials were determined to fight high inflation with further interest rate hikes.
James Bullard, President of the St. Louis Fed, had said Thursday he was leaning towards supporting a third straight 75 basis point rate hike in September. The Federal Reserve has steadily increased the monetary policy level since the interest rate hike in March and has now raised it to the range of 2.25 to 2.50 percent.
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