Next news. The New York Stock Exchange, which had risen sharply even after the US Federal Reserve raised its key interest rate by 0.5 percentage points at a time, plunged again in one day. After the US rate hike, the UK also raised interest rates, the highest since 2009.
Correspondent Kim Jong-won from New York.
Yesterday (the 5th), when the Federal Reserve, the central bank of the United States, raised interest rates by 0.5 percentage points at a time for the first time in 22 years since 2000, the New York stock market rose sharply by around 3%.
The so-called ‘relief rally’ continued as Fed Chairman Jerome Powell drew the line that there would be no giant step, a 0.75 percentage point increase that some had feared.
But this optimism did not last 24 hours.
The New York Stock Exchange fell in unison today, giving back yesterday’s gains.
The Dow Jones and S&P 500 fell more than 3%, while the tech-focused Nasdaq fell nearly 5%.
It has been speculated that this is due to the uncertainty that the Fed’s intensive tightening policy will bring to the market.
[아담 쿤스/윈스럽 캐피털 매니저 : 인플레이션이 어떻게 진행될지, 그 인플레이션에 연준이 어떻게 반응할지, 그리고 궁극적으로 그런 움직임들이 세계 경제성장에 어떤 영향을 미칠지에 대한 불확실성이 오늘 이런 주가 하락을 이끌었습니다.]
In addition, a rise in government bond yields of more than 3% also contributed to the decline in the stock price.
Bitcoin, which broke through the $40,000 mark after the interest rate announcement yesterday, also fell by nearly 9%, dropping to the $36,000 level.
The Bank of England also raised the benchmark interest rate by 0.25 percentage points, the first time since 2009 that the benchmark interest rate has risen to 1%.
As countries around the world, suffering from inflation due to the corona crisis and the war in Ukraine, take such austerity policies, there is growing concern that the global economy may stagnate.