$57 billion wiped from Australian market, Wall Street rout as Dow plunges 1,000 points, Nasdaq loses 5%

The Australian stock market has lost almost $60 billion in a single day, and Wall Street has lost trillions as investors fled amid concerns that more official interest rate hikes would not be enough to stem the rising inflation.

The belated reaction in the US came a day after the US Federal Reserve raised the fed funds rate by 50 basis points and Fed Chairman Jerome Powell said there would be more rate hikes. half a percentage point in the coming months.

Traders raised their bets on a 75 basis point hike in June, although Powell almost ruled it out.

Rising interest rates, war in Ukraine, COVID-19 lockdowns in China are weighing on investor sentiment.

The Dow Jones Industrial Average slumped 3.1 percent to 32,998, the S&P 500 fell 3.5 percent to 4,147, and the Nasdaq slumped 5 percent to 12,318, reversing yesterday’s rally.

That is the lowest level for the Nasdaq since November 2020 and the lowest for the Dow since October 2020.

All 11 major S&P industrial sectors fell, with consumer discretionary stocks leading the declines.

The VIX volatility index rose to 31.20 points.

Aware , updated

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