China News Service, New York, June 19. The three major US stock indexes collectively closed down on the 18th. Among them, the Dow Jones Industrial Average fell 533.37 points, and closed down for five consecutive days, setting its worst weekly performance since the end of October last year.
On the same day, the Dow Index closed at 33290.08 points, down 1.58%; the Nasdaq Composite Index closed at 14030.38 points, down 0.92%; the Standard & Poor's 500 stock index closed at 4,16.45 points, down 1.31%.
On the disk, power production, water services, semiconductor products, and oil and gas sectors were among the top decliners, financial and banking stocks generally fell, and large technology stocks rose and fell mixed.
After closing the decline for five consecutive trading days, the Dow has fallen by 1,189.52 points this week, the largest weekly decline since the end of October 2020.
In addition, the S&P 500 index fell 1.9% this week, breaking the three-week-old upward trend.
The Wall Street Journal reported that US stock traders have been paying attention to the Fed's statement on monetary policy in recent days. However, both the documents released after the regular meeting or the personal statements of officials have caused market concerns. The expectation of interest rate hikes has put pressure on US stocks.
On the 16th, the Federal Reserve announced the path of interest rate hikes after a two-day regular monetary policy meeting. Most officials predict that interest rate hikes will come as early as 2023, and more than half of them predict that they will raise interest rates twice before the end of 2023.
On the 18th, St. Louis Federal Reserve Bank President Brad said that he believes that interest rate hikes will occur as early as the end of 2022.
According to reports, some investors were eager to close their previous profits out of panic, which exacerbated the decline in US stocks.
The Chicago Board Options Exchange Volatility Index (Cboe VIX), which measures the degree of market panic, broke through the 20 mark on the 18th and rose to its highest point in nearly a month.
US Consumer News and Business Channel (CNBC) reported that in addition to interest rate hike expectations, during this regular meeting, Fed officials discussed the issue of reducing the scale of debt purchases. Analysts expect the Fed to start slowing down asset purchases later this year. Completely withdraw from this part of the support measures of ultra-loose monetary policy.
CNBC also quoted analysts as saying that since investors have noticed that the Fed’s monetary policy has shifted from a “dovish peak”, the volatility of the U.S. stock market may increase in the near future.