US stock markets had their worst week in the stock market since March 2020. The broad S&P 500 index ended Friday 5.8 percent lower than the previous week. This is the largest weekly loss in New York since the beginning of the Corona crisis.
The sharp interest rate hike by the US Federal Reserve on Wednesday caused a gloomy mood among investors. It has fueled fears of an economic downturn. The central bank indicated its willingness to accept recession and high unemployment rates to contain high inflation.
The rapid rise in interest rates is always a nuisance to investors. Higher interest rates are not favorable for higher risk investments such as stocks.
Federal Reserve Chairman Jerome Powell emphasized Friday that the Fed really wants to reduce currency depreciation in the world’s largest economy to 2%. Major indices closed with mixed results.
The Dow Jones index fell 0.1 percent to 29,888.78 points. The benchmark index fell below 30,000 points for the first time since January last year on Thursday. For the S&P 500 Index, there was a small increase on the last trading day of the week, by 0.2 percent at 3,674.84 points. The Nasdaq Technology Index rose 1.4 percent to 10,798.35 points, after prices rebounded by 4 percent the previous day.
Adobe is down more than 1 percent over the weekend. The software maker delivered a disappointing forecast for the rest of the year. US Steel, in turn, is just under 2 percent thick. The steelmaker has released a better-than-expected outlook for the current quarter. The company benefits from higher demand and higher steel prices.
Chinese online stores JD.com and Alibaba are listed in New York and have also attracted attention. JD.com reported a 5.2 percent increase, and said via CEO Shane Lijun that the company is considering serving meals. Alibaba’s stock rose about 1 percent after a possible initial public offering of Ant Group, Alibaba’s payment subsidiary, approached, according to a media report.
US investors were preparing for a long weekend. Wall Street doors will remain closed on Monday due to Juneteenth. This is to commemorate the end of slavery in the United States.
The euro was at $1.0496 versus $1.0473 at the close of European stock markets earlier in the day. The price of a barrel of US oil is lower by about 7 percent at 109.68 dollars. Brent oil is about 6 percent cheaper at $113.05 a barrel.
“Lifelong zombie fanatic. Hardcore web practitioner. Thinker. Music expert. Unapologetic pop culture scholar.”