US stock indices open lower, amid fears that raising interest rates will lead to a recession in the US economy.
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US stock indices fall amid fears of interest rate hike
Wall Street’s major indices opened lower today, Monday, continuing to decline for the third consecutive session, amid fears that an interest rate hike by the Federal Reserve (the central bank) would push the US economy into recession.
The Dow Jones Industrial Average fell 99.56 points, or 0.32%, to 30,722.86 points.
On the other hand, the “Standard & Poor’s” 500 index fell by 23.42 points, or 0.60%, to 3,849.91 points. The Nasdaq index fell 109.84 points, or 0.96%, to 11,338.57 points.
A few days ago, the World Bank warned that the world has Heading into a global recessionAt the same time, central banks raise interest rates to combat persistent inflation.
“The three largest economies of the United States, China and the eurozone are slowing sharply, and even a moderate blow to the global economy during 2023 might push it into recession,” the bank said in a study.
The Federal Reserve intends to Raising interest ratesSince March, to slow the pace of demand and reduce prices, and intends to continue this measure until the beginning of the year 2023 at least, to limit the rise in prices.