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On Wednesday, all three key indices of Wall St. fell across the board following a US Fed’s decision to hike its benchmark borrowing costs further by 50-bps to 4.5 per cent, while the US Fed Chair Powell’s remarks on a probable stagnation in growth in US economy in a near-term added to further holocaust. In the matter of the fact, in the day’s downturn in Wall St. alongside the Us Dollar Index as well as US Treasury bond yields, have been largely prompted by a risk of an impending recession in the US, while a number of analysts had already quoted saying that the US economy is already facing off a recession following two straight quarters of contraction earlier in the year, while an increase in GDP growth by 2.1 per cent in Q3, 2022 depended largely on services sector with factory activities struggling to fend off a malevolent malaise.
Earlier in the day, the US Federal Reserve chair Jerome Powell had signalled that it would continue to hike interest rates despite a real threat of a recession in the US, marking off the first such remarks by a Fed policymaker, eventually sending shockwaves across the US money markets.
Wall St. pounded after US Fed rate-hike
Citing statistics, in the day’s US market closing bell, the US Dollar Index fell by 0.39 per cent to 103.31 and the benchmark 10-year US Treasury bond yields drowned by 0.02 percentage point to +3.47 per cent, while all three key indices of Wall St.
soured. The trade-sensitive Dow dwindled 0.42 per cent to 33,966.35 and Wall St. benchmark S&P 500 shed 0.61 per cent to 3,995.32, while tech-heavy Nasdaq was nudged 0.76 per cent lower to 11,170.89.