THE NEW YORK STOCK MARKET ENDS IN VERY SHARP DROP
(Archyde.com) – The New York Stock Exchange ended sharply lower on Monday until it pushed the S&P 500 back into the dreaded “bear market” zone as bond yields reversed course and surged dramatically .
The Dow Jones index fell 2.79%, or 876.05 points, to 30,516.74 points.
The broader S&P-500 lost 151.23 points, or 3.88%, to 3,749.63 points.
The Nasdaq Composite fell for its part by 530.8 points (-4.68%) to 10,809.23 points.
At this level, the S&P 500 is down nearly 22% from its closing peak on January 3 (4,976.56 points), and officially enters a “bear market” zone. The CBOE Volatility Index, also known as the “fear index” ended at its highest level since May 9.
This further deterioration in the stock market trend is explained by the upward revision of expectations of many analysts for a rate hike by the Federal Reserve, the probability of a hike of three quarters of a point on Wednesday being considered more and more credible following the acceleration of inflation in the United States and despite the signs of deterioration in the economic situation.
The main compartments of the S&P 500 all ended in the red and only five companies ended in the green.
The dollar was up 1% once morest a basket of currencies a few minutes following the close of Wall Street, while the euro stood at 1.0405 dollars (-1.05%).
On the bond market, ten-year paper [US10YT=RR] took no less than 21.6 basis points to settle at 3.3732% while its five-year counterpart [US10YT=RR]advanced 23.4 basis points to 3.4873%.
On the oil market, WTI stood at $120.87 (+0.17%) and Brent at $122.15 (+0.13%).
(Nicolas Delam)
