The US Stock Markets Indices again returned to the red mark on Thursday. The stock market was sold off as the inflation rate in the US reached a 40-year high. Given the high level of inflation, the US central bank will increase the Federal Reserve interest rates. The Federal Reserve’s Monetary Policy Committee meeting is due next week. After this, the announcement of increasing the interest rate can be done. Here, the markets in India opened with slight weakness on Friday morning. But, after a while came in the green mark.
Russia’s attacks on Ukraine continue. On Thursday, the talks between the foreign ministers of both the countries were inconclusive. Given the uncertain situation, investors and traders are showing interest in safe investment instruments. Because of this the stock markets have fallen. On Thursday, all three major indices of the US markets closed with a red mark.
However, all three indices managed to recover from their session lows. Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago, said: “Same story again. In fact, the day-to-day movement of the market is being influenced more by the geopolitical situation than by the economic news.”
Inflation based on the Consumer Price Index in the US rose to 7.9 per cent in February. This is the highest in the last 40 years. The US Labor Department released inflation figures on Thursday. Nolte said inflation in the US was expected to be at a high level. He said that in the next one or two months there will be more bounce in it. The reason for this is that there has been a sharp jump in commodity prices after the attack on Ukraine.
It was already being speculated that the Federal Reserve would increase the interest rate by 0.25 percent after the meeting next week. But, looking at the latest inflation data, it can increase the interest rate more than this. US central bank chairman Jerome Powell has indicated this last week.
On Thursday, in the major indices of the US stock markets, Dow Jones fell 112.18 percent, or 0.34 percent, to close at 33,174 points. The S&P 500 (S&P 500) closed down 0.43 per cent at 4,259 points. Nasdaq was down 125 points, or 0.95 per cent, at 13,129 points at the end of trading.
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