The American markets witnessed a bloody day yesterday, Thursday, during which the Standard & Poor’s 500 index of the largest 500 listed companies erased regarding 1.3 trillion dollars from its market value, following the decline included 95% of the index companies.
All indices also fell by large percentages that exceeded 5% for the “Nasdaq 100” index, which is the largest loss since September 2020, while the Dow Jones Industrial Average fell 1033.07 points, or 3.03%, to 33027.99 points.
The strong drop came just one day following Wall Street’s biggest rise in two years on Wednesday, following the Federal Reserve’s decision to raise interest rates by half a percentage point, the largest increase in 22 years, to fight inflation.
Analysts attributed the reasons for the current selling wave to the uncertainty of the success of the “Federal” strategy in eliminating inflation without causing an economic recession.
