China News Agency, New York, March 7 (Xinhua) The U.S. stock market fell sharply on the 7th as investors worried that the surge in commodity prices could damage economic growth.
Among the three major indexes, the Nasdaq Composite Index fell 3.62%, and fell more than 20% from the historical high and entered a technical bear market.
On the same day, the three major indexes suffered a violent sell-off after the opening bell, and this sell-off continued throughout the day.
As of the close, the Dow Jones Industrial Average fell 797.42 points, or 2.37%, to 32,817.38 points; the Nasdaq fell 482.48 points, or 3.62%, to 12,830.96 points; the S&P 500 stock index fell 127.78 points, or 2.95%, to 4,201.09 points .
The Wall Street Journal said that the tech-heavy Nasdaq has retreated more than 20% from its all-time high in November last year and has fallen into a technical bear market territory.
The Dow and S&P 500 have fallen more than 10% from their peaks, and both fell into correction territory.
The report quoted analysts as saying that the inflation rate in the United States is already at a high level, and the recent surge in the prices of commodities such as energy, agricultural products, and metals triggered by the situation in Ukraine has put the prospect of economic recovery in jeopardy.
Investors worry that the impact on global financial markets will be longer and more widespread than previously expected.
Among all the influencing factors, the surge in international crude oil prices is considered to be the biggest trigger for the turmoil in the U.S. stock market.
A day earlier, U.S. crude futures topped $130 a barrel in electronic trading, hitting a nearly 14-year high.
If the prices of commodities such as energy continue to rise, resulting in continued high price levels, the global economy will face the risk of stagflation or even recession.
Bloomberg News said that investor vigilance in the U.S. stock market is increasing, and they are constantly evaluating the future risks of their holdings.
As stock market volatility increases, more investors will make the decision to sell U.S. stock assets to reduce risk exposure.
"In the face of market volatility, there is no easy-to-follow risk map for reference," said Sera Malik, chief investment officer at Newwin Investments, a well-known asset management firm.
At present, global energy prices may continue to rise, and some large growth stocks may have investment opportunities in the short term, while long-term opportunities remain to be seen.
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