China News Agency, New York, June 13 (Reporter Wang Fan) The U.S. stock market suffered another heavy setback on the 13th as market worries about an economic recession intensified.On the same day, the S&P 500 stock index fell more than 20% from its all-time high and fell into bear market territory.
As of the close, the Dow Jones Industrial Average fell 876.05 points, or 2.79%, to close at 30516.74; the Nasdaq Composite fell 530.80 points, or 4.68%, to close at 10809.22; the S&P 500 fell 151.23 points, or 3.88 %, to close at 3749.63 points.All three major stock indexes hit new 52-week lows during the session.
Bloomberg reported that with the S&P 500 falling more than 20% from its all-time high, all major U.S. stock indexes have fallen into a bear market, marking the official end of the last round of U.S. stock bull markets.Wall Street analysts widely expect the Fed to raise the federal funds rate to 4% by mid-2023 as inflation soars.Some analysts believe that one of the Fed's next three regular monetary policy meetings will raise interest rates by 75 basis points.
On the same day, the U.S. 10-year Treasury bond and 2-year Treasury bond interest rate curve inverted again, indicating that the risk of a U.S. recession was rising.The CBOE Volatility Index (Cboe VIX), a measure of market panic, shot above 35 at one point, jumping more than 25% to its highest level in more than a month.This partly reflects fears of a recession in the market.
Goldman Sachs Group Inc. warned in a new report that if a recession does come, the S&P 500 is expected to fall to 3,150.This means that U.S. stocks may not have bottomed out yet.If there is a "hard landing" in the economy, the S&P 500 could fall by about 15%.
The "Wall Street Journal" said that data released by the Labor Department on Friday showed that the U.S. consumer price index (CPI) rose 8.6% year-on-year in May, the highest value in 40 years.Investors worry that the Federal Reserve will tighten monetary policy more than expected to curb inflation, and are accelerating the sell-off of riskier U.S. stock assets.Some investment strategists pointed out that in the face of the pessimistic outlook of financial markets, cash may be the best choice for now.(Finish)
【Editor: Song Yusheng】
