China News Agency, New York, May 5 (Reporter Wang Fan) After experiencing a strong rebound the previous day, the US stock market fell sharply on the 5th, with the Dow Jones Industrial Average falling more than 1,000 points.
Investors' fears that the economy is slipping into stagflation or even recession are cited as the main reason for the sharp turnaround in the market.
As of the close of the day, the Dow fell 1063.09 points, or 3.12%, to close at 32997.97; the Nasdaq Composite fell 647.16 points, or 4.99%, to close at 12317.69; the Standard & Poor's 500 stock index fell 153.30 points, or 3.57 %, to close at 4146.87 points.
All three major indexes completely erased their gains from the previous day.
Bloomberg quoted analysts as saying that more and more investors are beginning to doubt that policymakers cannot control prices, and their fears that the economy is falling into stagflation have led to heightened market volatility.
In his speech on Wednesday, Federal Reserve interim chairman Powell ruled out the possibility of a single 75 basis point interest rate hike in the short term. After the market sentiment was appeased, U.S. stocks rose in a release, but when investors recovered, they found that the road ahead was difficult.
Prior to this, data such as the US real gross domestic product (GDP) in the first quarter and the US personal consumption expenditures (PCE) price index in March have already explained the situation of the US economy.
On the 5th, data released by the U.S. Department of Labor showed that in the first quarter, the initial value of non-agricultural productivity in the United States fell by 7.5% at an annual rate, the largest decline since the third quarter of 1947. %, the largest increase in four decades.
The figures once again underscore the persistence of high inflation.
The Wall Street Journal said that U.S. stocks plummeted overnight, and some investors were skeptical of the Fed's rapid rate hikes, worrying that aggressive rate hikes could trigger a recession.
Tech stocks suffered their biggest sell-off on the day.
In terms of individual stocks, e-commerce giant Amazon fell 7.56%, new energy car company Tesla fell 8.33%, streaming media platform Netflix fell 7.69%, and Apple fell 5.57%.
Randy Frederick, manager of trading and derivatives at Charles Schwab, said the decline, which directly wiped out the previous day's gains, was "extraordinary" and reminiscent of U.S. stocks around 2008.
While the U.S. economy is in better shape now than it was then, many analysts are scratching their heads.
"Hopefully investors are just succumbing to risk, and I hope the stock market is bottoming out." (End)Keywords: