New York, 23 September. The Dow Jones Industrial Index fell almost 700 points in the middle of the session this Friday and entered a bear market (20% below its last record) due to the rise in interest rates in the United States and fears of a recession.
At 12:45 local time on the New York Stock Exchange (16:45 GMT), the Dow Jones fell 2.30% or 693 points, to 29,383 points, reaching its lowest level since the beginning of the year, while the optional S&P 500 fell 2.33% and the Nasdaq index fell 2.28%.
The weekly evolution of the markets has been marked by a significant fall after the central banks continued the monetary tightening to fight inflation, even if this leads to a recession.
The US Federal Reserve (Fed) raised interest rates again on Wednesday by three quarter points, to 3% and 3.25%, a monetary tightening aimed at stemming long-running high inflation that has sparked fears in among investors.
The weekly evolution of the markets in Europe is marked today by a significant drop, which is linked to the decision of the Fed and other major central banks around the world such as England, which yesterday raised rates by 50 basis points, to 2, 25. %.
Stock market volatility was rising 11% according to the Vix index, known as the fear gauge, and moves in the government debt market accompanied the selloff in securities, particularly short-term Treasury bonds.
The 2-year bond yield, the most sensitive to monetary policy, rose to a 15-year high of 4.266%, while the 10-year bond yield rose to a 10-year high, at 3.829%.
In the oil market, the Texas barrel fell by more than 5% at this time and stood at around 78.88 dollars, coinciding with the strong revaluation of the dollar, a currency used by foreign investors for their trade.
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