Fed has Effected on the Stock Market of Almost Every Country

Now the US stock market has  started with a record sell-off.

The effect of the fall in the US stock markets is also being seen in the other  countries stock markets today.

The Dow Jones has fallen 2.42 percent to 29927. This 52 week low is close to 29540. It has broken around 2071 points in the last 5 sessions. On June 10, it was at the level of 32000. At the same time, there was a huge decline of 4.08 percent in Nasdaq and it came down to 10646. It has dived 897 points in the last 5 seasons. This fall has happened in the S&P as well. The S&P 500 fell 3.25 percent to 3666 on Thursday. It has lost 7.74 percent in the last 5 sessions. This is also very close to the last 52 week low of 3639.

deepening shadow of economic slowdown

Federal Bank of America has increased interest rates by 0.75 percent. This is the biggest increase in interest rates since 1994. Along with this, the central banks of England, Switzerland and Japan have also increased interest rates. Global inflation has reached record levels due to the increase in oil prices due to the ongoing war between Russia and Ukraine.

Market shivering due to fear of inflation

US stocks have started diving due to fear of inflation. Among companies with mega market capital, Amazon.com’s shares fell 3.72 percent to a 52-week low of $101.26. Microsoft is also down 2.70 percent at $244.97 and it is also very close to the 52-week low of 241.51. Apple’s shares have also fallen 3.97 percent. It has also settled near its 52-week low of $128.46. It closed at $130.06 on Thursday. Elon Musk’s company Tesla also succumbed. This stock recorded a huge decline of 8.54 fees.

Indian market also battered

The BSE Sensex closed 1,045.60 points, or 1.99 per cent, lower at 51,495.79 on Thursday on a weak global trend, concerns over inflation and capital outflows of foreign institutional investors. In the last five trading sessions, the Sensex has come down by 3,824.49 points or 6.91 per cent. Due to the continued fall in the stock markets for the last five days, investors have lost Rs 15.74 lakh crore.

Stock Market: The stock market hit a 52-week low, know the major reasons for the decline in the market
Share Market News: Sensex and Nifty have gone down to a 52-week low due to Thursday’s fall. Experts also consider some global factors responsible behind this slowdown in the Indian markets.

Market experts are assuming global conditions as the reason for the tremendous fall in the stock market. That reasons such as increase in interest rates by the US Fed Reserve, fall in global stock markets and rising crude oil prices are continuously keeping pressure on the Indian stock market and it may continue further.

US Fed raises interest rate

According to the news, the increase in interest rates by the US Federal Reserve has had an effect on the stock market of almost every country. The US central bank has increased the interest rate by 0.75 percent. This is the biggest increase in interest rates since 1994. Morgan Stanley is expecting further growth in this. According to him, the interest rate can increase to 2.625 percent by the end of this year. Global markets are horrified by the fear of recession in America and the Indian market is also not untouched by it.

It is also being speculated that this week the Bank of England may increase interest rates for the fifth time in a row. It is expected that following the path of the Federal Reserve, the Bank of England can increase by half a percent. Inflation in England has risen to a 40-year high in April.

Global markets fall

Global markets fell sharply due to the Federal Reserve’s decision to hike interest rates. By the time of writing the news, Germany’s DAX was trading with a decline of 2 percent, Britain’s FTSE 1.4 percent and France’s CAC 1.6 percent. The markets of China, Hong Kong, Australia and Japan declined by 0.4 per cent to 2 per cent today. Its effect was also seen on the Indian market.

crude oil prices

Oil prices remain high due to supply constraints. International benchmark Brent crude futures are trading 0.3 per cent higher at $119, while US crude oil is up 0.4 per cent to $115.8 per barrel. Investors are also scared of the continuous increase in crude prices.

FII sell-off

 

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