the next day toraise US interestAnd the Federal Reserve’s announcement of the continuation of the hike during 2023. US stocks received a strong blow during Thursday’s trading, the most prominent of which was the loss of the Dow Jones Industrial Average by 764 points, representing 2.25 percent of its value, on the worst day of the index in three months.
And after the Federal Reserve confirmed its continued application Restrictive policies For some time, despite what appeared during the past two months of decline inflation In the country, stocks of technology companies, most affected by interest rate changes, fell, with the Nasdaq index losing nearly 3.25 percent of its value, while the S&P 500 index only declined by 2.5 percent.
By the end of Thursday’s trading, the Nasdaq index’s loss since the beginning of the year amounted to more than thirty percent.
Central banks in America, Europe and England raised their basic interest rates by half a percentage point, easing the rate of interest rate hikes that characterized the previous months. However, statements by officials in those banks assured investors that interest rates will remain in 2023 at higher levels than expected.
After the federal funds rate reached a range of 4.25%-4.50% on Wednesday, US Federal Reserve Chairman Jerome Powell said, “It takes more than that to say with confidence that inflation will continue to fall.”
European shares were not spared during Thursday’s trading, as shares recorded Euro-zone Today, Thursday, the worst daily performance in six months, and the European Stoxx 600 index fell by 2.83 percent, reaching its lowest level in about a month.
In a related way, the “Financial Times 100” index of the shares of major companies in the United Kingdom decreased by 0.93 percent, while the index of medium companies decreased by 0.8 percent.
In a related manner, the price of gold fell by as much as 2 percent today, Thursday, to its lowest level in about a week, coinciding with the rise of the dollar, after the Federal Reserve said that next year will witness more rate hikes.
The spot gold price fell 1.6 percent to $1,777.88 an ounce, by 1846 GMT. And gold had fallen below the price of $ 1772 an ounce, earlier in the session.
Oil prices also fell by about 2 percent today, Thursday, amid dealers’ concerns about the outlook for fuel demand due to the rise in the dollar and with global central banks raising interest rates.
After rising for three consecutive days, Brent crude futures fell $1.49, or 1.8 percent, to $81.21 a barrel upon settlement, while US West Texas crude lost $1.17, or 1.5 percent, to $76.11 a barrel upon settlement.