© Reuters. [뉴욕증시] Fed, tightening is long … 1% discount on trade deficit announcement
US stocks plunged on news of the Commerce Department’s trade deficit announcement in October. It is interpreted that the preference for investment products, which are risky assets, has fallen due to the judgment that the tightening of the Federal Reserve System (Fed) could last longer than expected.
On the 6th (eastern time) on the New York Stock Exchange (NYSE), the index closed at 33,941.26, down 350.76 points (1.03%) from the battlefield.
The index for large-cap stocks fell 57.58 points (1.44%) to 3941.26, and the index for technology stocks fell 225.05 points (2.00%) to 11,014.89.
The Dow fell 2.4% this week, while the S&P 500 and Nasdaq lost 3.2% and 3.9%, respectively. The S&P 500 Index fell for the fourth consecutive day. 0.05 percentage point to 3.52%, and the two-year government bond yield fell 0.02 percentage point to 4.36%.
US interest rate futures markets are betting on a 0.50 percentage point increase in the Fed’s benchmark interest rate at its upcoming December meeting. However, recent economic indicators have shown robustness, so strong Fed tightening is expected to continue for some time.
Of the 11 sectors in the S&P 500 index, all 10 fell except utilities. Energy prices fell by more than 2.6% as New York oil prices hit their lowest level since December last year amid fears of a recession. Technology stocks and telecom stocks also fell more than 2%.
“Inflation is eating away at everything,” said Jamie Dimon, CEO of JPMorgan Chase, the largest bank in the United States, in an interview with CNBC on the same day, warning that the United States could face a mild or severe recession the next year.
Meanwhile, October in the US was $78.2 billion, up 5.4% from the previous month. It is interpreted that the reduction in exports has had an effect on widening the deficit.
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