NY stock market Dow average stock price fell below the previous year for the first time in four years The rate of decline is 8.7%

On the 30th, the New York stock market closed its last trading day.

Against the backdrop of record inflation and rapid interest rate hikes, the Dow Jones Industrial Average fell below the previous year for the first time in four years, and the rate of decline was 8.7%, the largest since 2008 when the Lehman shock occurred.

The closing price of the Dow Jones Industrial Average on the New York stock market on the 30th, which was the last trading day, was $33,147.25, down $73.55 from the previous day.

The Fed = Federal Reserve Board has led to the move to sell stocks due to concerns that the economy will deteriorate due to the view that it will continue to raise interest rates next year.

The Dow Jones Industrial Average dropped 8.7% from the end of last year, falling below the previous year for the first time in four years, and the drop was the largest since 2008 when the Lehman Shock occurred.

In addition, the Nasdaq, which has many high-tech stocks, fell significantly by 33.1% compared to the end of last year.

Dow Jones Industrial Average this year

After hitting an all-time high of $36,799.65 on January 4, 2019, stock prices began to fall as concerns about the future grew as the situation in Ukraine became more tense.

After Russia's military invasion of Ukraine in February, stock prices temporarily rose as stocks were bought back among investors who had been on high alert before the invasion.

However, when the Fed (Federal Reserve Board) raises interest rates for the first time in three years and three months in order to curb record inflation in March, stock prices will fall again due to concerns that the economy will cool down.

In June, the Fed surprised the market by raising interest rates by an unusual 0.75%, but the consumer price index rose 9.1% in June compared to the same month the previous year, and inflation did not subside. Hmm.

Inflation calmed down in the market in July and August, and there was widespread speculation that the Fed would slow down its pace of rate hikes. The stock price plummeted as a result.

At the end of September, it broke below $29,000 for the first time in about a year and 11 months.

After that, the growth of the consumer price index slowed down, and the FRB slowed down the pace of interest rate hikes in December, which led to an upward trend in stock prices. We have seen many price drops.

New York crude oil market WTI futures price trends

In 2022, the futures price of WTI, which is an index for international crude oil trading in the New York crude oil market, fluctuated greatly.

At the end of last year, the price was in the $75 per barrel range, but this year it will rise as there is a growing view that the supply of crude oil from oil-producing Russia will be stagnant over the situation in Ukraine.

After Russia's military invasion of Ukraine in late February, futures prices rose further, reaching a high of 13 years and 8 months above $130 per barrel in early March.

After that, the futures prices fell due to concerns that China's economy would stagnate due to strict restrictions on movement under the "zero corona" policy, and that the global economy would slow down due to rapid interest rate hikes in Europe and the United States, leading to a drop in demand for crude oil. becomes a trend.

In late September, the price dipped below $80 per barrel for the first time in about eight months.

OPEC Plus, which is made up of major oil-producing countries such as Saudi Arabia and Russia, embarked on a large-scale production cut in October to support crude oil prices, but in early December, it fell to the $70 per barrel level.

Expert ``Japan's economy next year will be in a difficult situation like other countries in the world''

What will happen to the US economy and the Japanese economy next year?

We spoke with Moody's Analytics chief economist Mark Zandi, who is well versed in global economic trends.

Regarding the US economy next year, the FRB = Federal Reserve Board expected to maintain the policy interest rate at a high level of about 5%, and said, ``Although inflation will ease, the risk of an economic recession is very high, and what kind of scenario will it be? The US economy will slow down," he said, predicting a tough year.

In addition, Mr. Zandi said that the Japanese economy next year will be the same as most other countries in the world will be in a difficult year, citing the rapid interest rate hikes in Europe and the United States and the slowdown in the Chinese economy. It's going to be a tough situation," he said.