{"id":460394,"date":"2022-06-09T23:55:42","date_gmt":"2022-06-09T20:55:42","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/dow-plunges-more-than-600-points-as-rate-pressures-grow\/"},"modified":"2022-06-09T23:55:42","modified_gmt":"2022-06-09T20:55:42","slug":"dow-plunges-more-than-600-points-as-rate-pressures-grow","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/dow-plunges-more-than-600-points-as-rate-pressures-grow\/","title":{"rendered":"#Dow plunges more than 600 points as rate pressures grow"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a28700c522c7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a28700c522c7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/dow-plunges-more-than-600-points-as-rate-pressures-grow\/#%E2%80%9CDow_plunges_more_than_600_points_as_rate_pressures_grow%E2%80%9D\" >&#8220;Dow plunges more than 600 points as rate pressures grow&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CDow_plunges_more_than_600_points_as_rate_pressures_grow%E2%80%9D\"><\/span>&#8220;Dow plunges more than 600 points as rate pressures grow&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>Stocks on Wall Street tumbled Thursday following the latest reminder that central banks now care more about fighting inflation than propping up markets.<\/p>\n<p>The S&amp;P 500 sank 2.4%, putting it on track for its ninth losing week in the last 10. The Dow Jones Industrial Average fell 638.11 points, or 1.9%, and the Nasdaq composite lost 332.04 points, or 2.7%.<\/p>\n<p>Wall Street\u2019s losses accelerated late in the day, as investors got their final opportunities to make trades before a highly anticipated report on US inflation due Friday morning. The S&amp;P 500\u2019s drop more than doubled in the last hour of trading.<\/p>\n<p>The weakness for markets started on the other side of the Atlantic after the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/apnews.com\/article\/russia-ukraine-covid-politics-health-10bdb0c93b5a45d3cd51c76091997c62\">European Central Bank said it would raise interest rates next<\/a>\u00a0month for the first time in more than a decade. Another hike is set for September, possibly by double July\u2019s increase, and the central bank will halt its bond-buying program next month.<\/p>\n<p>It marks a \u201csea change\u201d in policy for the European Central Bank, according to Marilyn Watson, head of global fundamental fixed income strategy at BlackRock.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/dowchart-June9-2022-1.jpg?w=1024\" alt=\"Dow Jones chart\" class=\"wp-image-22601666\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/dowchart-June9-2022-1.jpg?quality=75&amp;strip=all&amp;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/dowchart-June9-2022-1.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/dowchart-June9-2022-1.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The Dow Jones plummeted Thursday, accelerating its descent in the afternoon.<\/figcaption><figcaption><span class=\"credit\">Post Photo illustrations<\/span><\/figcaption><\/figure>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/dow-600-point-fall-01.jpg?w=1024\" alt=\"NYSE trader\" class=\"wp-image-22599814\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/dow-600-point-fall-01.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/dow-600-point-fall-01.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/dow-600-point-fall-01.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The weakness for markets started on the other side of the Atlantic after the European Central Bank said it would raise interest rates for the first time in more than a decade. <\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>And it\u2019s part of a growing global tide where central banks are removing ultra-low interest rates that goose borrowing, economic growth and stock prices. Instead, they\u2019ve swung their focus toward raising interest rates and making other moves to slow growth in order to knock down\u00a0high inflation.<\/p>\n<p>The risk is that such moves\u00a0could cause a recession\u00a0if they\u2019re too aggressive. Even if central banks can pull off the delicate balancing act and avoid a recession, higher interest rates put downward pressure on stocks and all kinds of investments regardless.<\/p>\n<p>The wide expectation is that the Fed will raise its key interest rate next week by half of a percentage point, the second straight increase of double the usual amount. Investors expect a third to hit in July.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/dow-600-point-fall-04.jpg?w=1024\" alt=\"NYSE trader\" class=\"wp-image-22599842\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/dow-600-point-fall-04.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/dow-600-point-fall-04.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/dow-600-point-fall-04.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Investors have been searching for signs that inflation may have already passed its peak, which would be good for markets because it could mean a less aggressive Fed. <\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>Where the Fed goes on there depends on inflation\u2019s path, which is why Wall Street is so keyed in on the latest reading for the consumer price index, which is due Friday morning. Economists expect it to show inflation slowed a touch to 8.2% in May from 8.3% a month earlier.<\/p>\n<p>Investors have been searching for signs that inflation may have already passed its peak, which would be good for markets because it could mean a less aggressive Fed. Speculation has been rising and falling that the Fed could take a pause on rate hikes at its September meeting, swaying with every data point on the economy.<\/p>\n<p>European stocks sank im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely after the European Central Bank\u2019s announcement on rates, which came before US markets opened. French stocks were down only slightly before the announcement, but the CAC 40 index fell to a 1.4% loss afterward. Germany\u2019s DAX lost 1.7%.<\/p>\n<p>In the US, Treasury yields rose following the move from Amsterdam, though they wobbled a bit after that. The 10-year Treasury yield got as high as 3.09% before paring back to 3.04%, up from 3.02% late Wednesday.<\/p>\n<p>A report showed that slightly more US workers\u00a0filed for unemployment\u00a0last week than economists expected. That\u2019s a potentially negative signal, but the overall number still remains low compared with history. Economists also said seasonal factors may have affected the most recent numbers, overstating some things due to the Memorial Day holiday.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/06\/09\/dow-plunges-more-than-600-points-as-rate-pressures-grow\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Dow plunges more than 600 points as rate pressures grow&#8221; Stocks on Wall Street tumbled Thursday following the latest reminder that central banks now care more about fighting inflation than propping up markets. The S&amp;P 500 sank 2.4%, putting it on track for its ninth losing week in the last 10. The Dow Jones Industrial&#8230;<\/p>\n","protected":false},"author":1,"featured_media":460395,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/dowchart-June9-2022-HP-1.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[130112,73977,72332,70359,70360],"class_list":["post-460394","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-6-9-22","tag-dow-jones-industrial-average","tag-nasdaq","tag-stocks","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/460394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=460394"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/460394\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/460395"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=460394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=460394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=460394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}