The global stock index MSCI recorded its biggest drop in the first half of the year on Thursday, while the American benchmark S&P 500 recorded the steepest drop in the first six months of 1970.
Behind the slides are concerns about the war between Ukraine and Russia, rising inflation, higher interest rates and a recent possible recession in the United States.
Yields on reference government securities have increased by about 150 basis points since the beginning of the year, the largest increase in the first half of the first six months of 1994.
In addition to the concern on Thursday, a Commerce Department report showed that consumer spending in the United States rose less than expected in May.
Although the report suggests that inflation is likely to have peaked, price pressures are still strong enough to leave the US Federal Reserve on a path of aggressive policy tightening.
“Inflation is no longer something we should not worry about. He is expected to be with us for some time, “said Sam Stoval, chief investment strategist at CFRA in New York.
The heads of the Fed’s central banks, the European Central Bank and the Bank of England met in Portugal this week and expressed their renewed commitment to controlling inflation, no matter how painful it is.
The Dow Jones Industrial Average fell 253.88 points, or 0.82%, to 30,775.43, the S&P 500 lost 33.45 points, or 0.88%, to 3,785.38, and the Nasdaq Composite fell 149.13 points. points, or up to 81.17.
Since the beginning of the year, the S&P 500 has lost 20.6%.
The pan-European index STOXX 600 lost 1.5% and the valuation of MSCI shares worldwide fell by 1.12%.
The MSCI global stock index fell 20.9% in the first half of 2022.
The Fed’s hawk and investors’ desire for liquidity in difficult times have helped support the US dollar.
The US dollar index rose 6.5% for the quarter in its biggest quarterly jump since the last quarter of 2016.
The index has risen 9.4% for the year so far.
On Thursday, the dollar index fell 0.343%, with the euro falling 0.01% to $ 1.0481.
Bitcoin last fell 5.92% to $ 18,904.06.
Government bond yields fell for the third day in a row on Thursday as investors continued to worry about a possible recession in the United States.
Yields on 10-year treasury bonds fell 10.4 basis points to 2.989% as buying asylum in the long run raised prices and lowered yields.
Oil prices fell by about 3% during the day.
OPEC + confirmed that it will increase production only in August as much as previously announced, but left investors wondering about future production.
Brent crude futures for September delivery fell $ 3.42, or 3 percent, to $ 109.03 a barrel.
The August contract, which expires on Thursday, fell 1.45 dollars, or 1.3%, to set at 114.81 dollars per barrel.
US crude futures fell $ 4.02, or 3.7 percent, to $ 105.76.
Spot gold fell 0.5% to $ 1,807.21 an ounce.