On December 8th, Friday, the main indexes of Wall Street tumbled by more than 2%, in a broad-scale sell-off, led by dreadful decline in internet and technology shares, as the death crossed indexes had posted their largest weekly loss since March, amid concerns over US-china trade tensions and defamatory delusions regarding FED interest rate hikes.
Virtually, the S&P 500 lost all of its gain from a week earlier, followed by the dovish FED comment from Chairman Jerome Powel, when the benchmark index had jagged its largest weekly rise in seven years. Despite a trade truce between Washington and Beijing, last Saturday, December 1st, the Wall Street shares had just experienced one of the worst weeks in 2018, as there had been growing concern whether a trade deal was possible in 90 days between US and China.
Apart from the US China trade tension, US yield curve has become another reason behind the recent leg of downtrend. Over the course of last week, the Wall Street has been focusing the bond yields, the direction of interest rate policies and the trade truce.
As none of them came in the assistance, Wall Street was nudged lower in to the deep reds and still, there has neither been any sign, nor any direction, that could relief the investors and restore its chastised confidence level.