Due to recession being feared and investors being worried as time is running out for a year-end rally, Stocks fell on Monday.
The stocks’ sinking
According to CNBC news, “The Dow Jones Industrial Average shed 162.92 points, or 0.49%, to close at 32,757.54. The S&P 500 fell 0.90% to 3,817.66, and the Nasdaq Composite shed 1.49% to 10,546.03, weighed down by shares of Amazon, which slipped 3.35%.
Monday’s close marked the fourth consecutive day of losses for all three averages.
The moves followed another down week for stocks after the Federal Reserve delivered a 50 basis point short-term interest rate hike and signaled higher-for-longer rates. Fears that the central bank will push the U.S. economy into a recession increased as policymakers upped their forecast for future hikes above previous expectations, saying they now expect to increase rates to 5.1%.”
“As we near the end of December, investors are still waiting on that Santa Claus Rally, with stocks coming off back-to-back down weeks for the first time since September,” said Chris Larkin, managing director of trading at E*Trade from Morgan Stanley. He added, “Data showing inflation cooling may have given the market a short-lived boost, but the Fed standing firm with Powell driving home the point that rates could remain elevated for quite a while likely grounded some investors.”
What is happening in the crypto Market?
According to AOL, “In crypto markets, bitcoin (BTC-USD) and other major cryptocurrencies were under selling pressure Friday, with bitcoin dropping below $17,000. Earlier this week, bitcoin had risen above $18,000 for the first time since the collapse of FTX in early November.