The New York Stock Exchange of the US traded this morning (December 6) local time, with the “Dow Jones” falling nearly 200 points amid concerns that US Federal Reserve raises interest rates Will result in the US economy facing recession.
Dow Jones Industrial Average Last movement at 33,756.65 points, down 190.45 points or 0.56%, S&P 500 Index at 3,955.03 points, down 43.81 points or 1.10% and the Nasdaq Index at 11,065.21 points, down 174.73 points or 1.55%.
Yesterday (Dec. 5), the Dow plunged nearly 500 points as investors worried that Strong US labor market and service sector Will be a factor supporting the Federal Reserve (Fed) to accelerate interest rates. Situations that will strengthen the dollar This will affect the profits of listed companies earning income from abroad.
Investors predict that The Fed is set to raise interest rates to 5.0% by the middle of next year after the strong employment report is released. Although the Fed has raised interest rates to 0.75% for four consecutive times.
The above results indicate that the Fed’s tightening of monetary policy in the past Still can’t stop the heat of the labor market. cause the prediction that The Fed will continue to raise interest rates next year. to slow down the economy and stem the rise of inflation
The CME Group’s FedWatch Tool shows that Investors now expect the Fed to raise interest rates to a range of 5.00-5.25% in May 2023 after previously forecasting 4.75-5.00%.
Read more