US stock market crash. Dow Jones lowest level in more than a year

On Wednesday, the Federal Reserve decided to raise interest rates by 75 basis points. This was the highest rate hike since 1994, despite the Federal Reserve raising interest rates in the last two meetings. by 25 basis points and 50 basis points, respectively. The reason for the increases is to fight inflation, which reached 8.6% in May according to the Consumer Price Index.

At first, all Wall Street indices improved, and the session on the stock exchange ended with the first gain in several days.

However, the enthusiasm in the stock market was short-lived. The Dow Jones Industrial Average, one of the most important stock indexes for companies listed on the New York Stock Exchange, fell more than 600 points on Thursday and It was below the main level of 30,000 pointsInvestors fear that the Federal Reserve’s more aggressive stance on inflation will lead the economy into a recession.

The index reached its lowest level since January 2021 and it is not known when the series of declines will end. Since the beginning of this year, its value has fallen by more than 18 percent.

The Dow Jones Industrial Average is one of the most important stock indices for companies listed on the New York Stock Exchange and Nasdaq, that is, the stock exchange in the United States. It includes 30 major American companies.

source:
businessinsider.com, Dow Jones

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