Wall Street closed the month and even the current quarter with a loss and has ended up touching new lows in 2022. For the first time since 2020, the Dow Jones Industrial Average (DJIA) made a close below 29000 points. Overall, the Dow Jones lost around 1.71% or 500 points and touched 28725.
On the Friday session, the S&P 500 index was down by 1.51% and closed its worth month ever since the March of 2020.
Experts believe that the current environment is very tough for tech stocks... And when we look at the prospects of higher interest rates, it seems that the markets are adjusting based on these factors.
For the short term, the market volatility is expected to be high, with a bias towards the downside. This sentiment will even continue as we enter into the earnings season.
All Major Indices Are Painting Red
Recently, the Fed chair also stressed the need to lower inflation and said that they are ready to commit for the long term. This was an indication that the Fed would not shy away from its current policy prematurely.
Nike, which is also a major stock, also fell sharply after news of potential sales increased. The thing which turned the sentiment negative was issues with the inventory and the supply chain. Overall, the Nike stock lost around 12.8% of its value.
On a quarterly basis, Nasdaq and the S&P 500 ended up registering losses during the first three quarters of the year. The Dow Jones, in particular, lost around 6.7% during the 3rd quarter and thus made a new record since 2015.
seems that the current economic situation in the USA has now started to show effects on the equities and other financial markets as well. The dollar is getting stronger, but the inflation and the interest rates are rising - All of these have made the perfect recipe for a negative bias in the stock markets!