Major US stock indexes opened sharply lower on Wednesday, after US inflation data came in higher than expected, fueling speculation that the Federal Reserve would He will raise interest rates sharply to contain inflation.
The Dow Jones Industrial Average fell at the open 237.70 points, or 0.77%, to 30743.63 points.
The Standard & Poor’s 500 index fell 39.13 points, or 1.02%, to 3,779.67 points, according to Archyde.com.
The Nasdaq Composite Index fell 208.18 points, or 1.85%, to 11,056.55 at the open.
On his part, Muhannad Al-Ama, managing director of BIM Capital, said that the Fed will maintain the rate of raising interest rates by 75 points in July, and 50 points in September, despite inflation rising above expectations.
Al-Ama added, in an interview with Al-Arabiya, that there is a split between the movement of futures contracts, which increases the rate of increase by 100 points, and what happens in the instant contracts of rising and reducing stock losses, in addition to the decrease in the yield of US Treasury bonds.