Global markets plummet as the Dow plunges 1000 points, spurred by fears of a slowing U.S. economy and aggressive Fed rate hikes.
Monday trading has seen red across the entire board as Dow plunges 1000 points. Fear of a slowing U.S economy worsens and sets off a sell-off across most financial markets around the world. With the Fed hiking rates sharply in early 2022, the Fed is walking on a tightrope as being too aggressive with cuts could potentially choke the economy, however being too gentle could potentially give inflation more fuel and impact the U.S more. The S&P 500 was down 4% in early trading, coming off its worst week in more than 3 months. The NASDAQ was down 5.5% and the Dow Jones was down 3% as of early monday trading.
Bitcoin dropped nearly 9.5% and countries such as Korea have seen their index drop by 8.8%, as concerns on a slowing U.S economy increase, based on the most recent job report data. Hopes of the Fed coming to save the day with a big rate cut are a possibility analysts say. “The Fed could ride in on a white horse to save the day with a big rate cut, but the case for an inter-meeting cut seems flimsy,” said Brian Jacobsen, chief economist at Annex Wealth management. The U.S economy is still growing and a recession is far from a certainty however many will be watching the markets and the next upcoming fed meeting to see how things will play out, as we inch towards election.
