The Dow Jones fell 640 points at the close

The Dow Jones fell 640 points at the close

The Dow Jones fell 640 points at the close and recorded the worst performance since July.

With the end of trading on Monday



US stock indices ended their session

Under the pressure of the energy crisis








US stock indices ended their session

with a noticeable decline,
with rising concerns about the prospects for monetary policy and
the state of economic stagnation in the United States.

Investors in “Wall Street” had expressed their fear of continuing
to raise interest rates faster by the US Federal Reserve,
after it was likely that members of
the Central Bank would continue to tighten monetary policy,
and their statements came due to the desire to significantly slow down inflation.


In expectations of analysts at “JP Morgan” that next September will witness
the last increase in interest rates at a large pace by the Federal Reserve, and this, in turn,
will be positive for the stocks that support it largely to rise in the second half of the year.


While investors’ attention is directed to the speech of Federal Reserve Chairman Jerome Powell
next Friday at the “Jackson Hole” conference,
in order to monitor the bank’s vision of inflation and monetary policy.


Technology stocks suffered in particular from concerns about raising the US interest rate,
as the “Amazon” stock recorded a decline of 3.6%,
while the shares of “Apple” and “Microsoft” also declined by 2.3% and 2.9%, respectively.

And AMC Entertainment Holdings’ stock fell by 41.9% after its competitor,
Cinema World, announced its possible bankruptcy.


At the end of the session, the Dow Jones Industrial Average declined by 1.9%,
or 648 points, to record 33,058 thousand points,
witnessing the largest daily drop since last June.

The S&P 500 index also fell to 4,138 points by 2.1%,
and the Nasdaq index fell by 2.5% to settle at 12,381 thousand points.

In the European market, the European “Stoxx 600” index fell to 433 points by about 1%,
with the British “FTSE 100” index falling to 7,533 points by 0.2%,
and the “German DAX” index falling to 13,230 points by 2.3%
In Japan, the Nikkei index fell to 28,794 thousand points, by 0.5%.



artıcal name The Dow Jones fell 640 points at the close










Under the pressure of the energy crisis

the bets of falling sterling and inflation in Britain set a record.


The energy crisis in the United Kingdom continues to have a major impact on higher
inflation rates at a time when the pound sterling is declining,
as the currency fell to its lowest level since March 2020 at 1.1758,
and one-year inflation swap contracts linked to the retail price index,
a measure of how quickly the rate of increase is increasing. Consumer costs,
by a percentage point, reached 12.7%,
and this resulted in breaking the record set in the previous week.


Such moves came with the impact of the rise in natural gas prices in the United Kingdom and Europe,
where traders are also concerned about the prolonged decline in energy supplies,
which may also result in increased inflation, which has reached its highest level in decades.


With a new Prime Minister due to be elected next month,
the United Kingdom is likewise subject to a condition of political uncertainty.

Citigroup economists predicted that the UK’s consumer price inflation index
would increase to 18.6% in January of the next year and
that households there would see an increase in their electricity bills when
the country decided to hike the price cap again.


Globally, bond markets fell on Monday,
as investors expected the tone of hawkish statements from the US Federal Reserve,
as the 10-year bond yields in Britain increased by 11 basis points to reach 2.52%,
while at the European level,
the German 10-year bond yields It also rose 8 basis points to 1.31%.


Among the things that negatively affect the sterling currency is
that investors believe that the central bank will face difficulties in increasing
interest rates as a result of the decline in the economy,

with the increase in inflation data in the United Kingdom for decades
and also a decline in the consumer confidence index last week,
amid expectations that the country Heading towards stagflation.



artıcal name The Dow Jones fell 640 points at the close



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