▲ New York Stock Exchange


The New York Stock Exchange, which surged on the remarks of Federal Reserve Chairman Jerome Powell, which was interpreted less hawkish than expected, turned lower in one day.



At the New York Stock Exchange (NYSE) on the 5th, the Nasdaq index centered on technology stocks closed at 12,317.69, down 647.16 points (4.99%) from the battlefield.



This is the lowest level in over 17 months since November 30, 2020.



The Nasdaq also fell to 12,183.56 during the day.



The Dow Jones Industrial Average fell 1,063.09 points (3.12%) to close at 32,997.97.



The Standard & Poor's (S&P) 500 index fell 152.79 points, or 3.56%, to 4,147.21.



The reason the major indices fell all at once was due to Chairman Powell's remarks, which fueled the stock price the day before.



Investors who were expecting a 75bp (0.75%p, 1bp = 0.01% point) rate hike next month bought stocks at once when Chairman Powell remarked that "a 75bp rate hike is not something we are actively considering." The market has been criticized for misinterpreting Chairman Powell's remarks.



It only drew a line on the possibility of a 75bp rate hike right now, but considering the inflation situation, the Fed has no choice but to raise rates steadily.



BNP Paribas predicted that the Fed would send a message to the market again, calling the market rally "a different situation than what Chairman Powell intended".



David Rubenstein, co-founder of the Carlyle Group, urged investors to "return to reality", saying the Fed will continue to raise interest rates from the 50bp level amid serious economic instability such as the Ukraine war and rising inflation.



(Photo = Getty Images Korea)