Tonight, many Americans are worrying about their retirement funds as stocks drop to new lows for the year. Investors begin week hitting the sell button thanks to rising inflation and fragile economy. The DOW was downed more than 2% on the day, NASDAQ dropped more than 4% and the S&P sank more than 3%. The S&P finished the day in a bear market. The last time that happened was at the start of the pandemic. And for those invested in Bitcoin and other cryptocurrencies, well that crypto market crashed today, wiping out billions of dollars. It all comes ahead of a closely watched Federal Reserve meeting this week, with the central bank is all but sure to raise interest rates. And it’s possible the benchmark rate could be raised even higher than forecasted going up by seventy-five bases points. That could be the biggest hike in more than two decades.
The market’s nose dive today from the start of trading sending investors scrambling. It’s a sharp reversal for stock market which has seen the record highs during pandemic, and now has some economists fearing a looming recession. The closing bell saved the market from tumbling further. The S&P 500 led the decline today, falling to its lowest point this year with investors coming to terms the consumer prices rising at their fastest pace in forty years. The drop is the latest in the stream of downturns for the markets. Tech companies took the brunt, Amazon lost sixty billion in market value, Apple more than eighty-five billion, pulling the NASDAQ deeper into bear market territory. The volatility is a hit to people’s 401Ks while inflation is also pummeling consumers. Average gas prices were topping $5 per gallon nationwide according to AAA. And at the grocery store, food prices are up 10%, adding to the uncertainty is just how aggressive the Federal Reserve will be in trying to cool the white-hot cost of living. More economists are expecting a bigger move, three quarters of a point, the biggest interest rate hike since 1994.
:::tip volatility
- : a tendency to change quickly and unpredictably 动荡
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