Recession fears pressure oil prices and plunge US stocks (Getty)
Despite a strong start, US stocks fell on Friday on fears of US economy In a recession, to end dealings hard weekwitnessed violent volatility, with a new warning message to investors, as the Nasdaq index hit its lowest levels in 2022.
During Friday’s trading, the Dow Jones Industrial Average lost more than four hundred points, representing 1.34% of its value, and the S&P 500 index fell by 2.37%, while the Nasdaq’s losses exceeded, most affected by changes in the rate of change. Benefitmore than 3% of its value.
The data released on Friday morning affected investor expectations, as the University of Michigan showed improved consumer sentiment this month, which was considered encouraging for the Federal Reserve to keep interest levels high for extended periods of time.
On Thursday, the Bureau of Labor Statistics said the Consumer Price Index, the Fed’s preferred measure of the nation’s inflation rate, rose in September more than expected.
Thursday’s stock trading witnessed great fluctuations, as the difference between the highest and lowest point of the Dow Jones Industrial Average recorded more than 1,500 points, while the difference between them in the S&P 500 was the fifth largest in the index’s history that exceeded six decades.
In a related context, oil prices fell by more than 3% during Friday’s trading, with increasing fears that the global economy, specifically China, will enter a global recession, reducing the demand for black gold.
Archyde.com news agency said that Brent crude futures fell $2.94, or 3.1%, to settle at $91.63 a barrel, while US West Texas Intermediate crude futures fell $3.50, or 3.9%, to $85.61.
Both Brent and West Texas Intermediate contracts fluctuated between high and low for most of today’s session, but the first fell during the week by 6.4% and the second by 7.6%.
The dollar index rose about 0.8%, and Archyde.com says that the dollar’s rise reduces demand for oil by making fuel more expensive for buyers who use other currencies.
On Thursday, the International Energy Agency cut its forecast for oil demand for this year and next, warning of a possible global recession.