New York stock market falls sharply

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The New York stock exchange closed with a sharp decline. The Dow Jones index lost nearly 700 points. Concerns that the US Federal Reserve will maintain its “hawkish” monetary policy were effective in the negative course in the markets.

The New York stock market ended the day with a sharp decline amid concerns that the US Federal Reserve (Fed) will keep interest rates high for a long time.

At the close, the Dow Jones index lost nearly 700 points and fell 2.06 per cent to 33,129.59 points.

The S&P 500 index fell 2 percent to 3,997.39 points and the Nasdaq index fell 2.50 percent to 11,492.30 points.

While uncertainties regarding the Fed’s monetary policy for the next period continued, a negative course was observed on the first trading day of the week in the markets closed on Monday due to the Presidents’ Day holiday.

“HAWKISH MONETARY POLICY WILL CONTINUE” CONCERN

Increasing concerns that macroeconomic data released in the US could keep the Fed “hawkish” for longer than expected were effective in the negative course in the markets.

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The weak earnings expectations of Home Depot and Walmart, one of the country’s major retail chains, for this year also raised concerns that rising interest rates are starting to damage the purchasing power of US consumers.

The US 10-year bond yield rose to 3.96 per cent, the highest level recorded since November 2022.

EYES ON FED MINUTES

On the macroeconomic data side, the manufacturing industry Purchasing Managers’ Index (PMI) in the US showed that the contraction continued in January, although it increased above expectations by 47.8.

Second-hand home sales in the country also decreased by 0.7 per cent on a monthly basis in January, falling to the lowest level since 2010.

While the minutes of the Fed’s last meeting gained importance for more clues on future monetary policy, analysts noted that the signals in the minutes to be published on Wednesday are at the focus of investors.

 

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