S&P tumbles 6% as global sell-off jolts Indian markets
The global financial markets witnessed a tumultuous day on Wednesday, with the S&P 500 index plummeting 6% to its worst day since March 2020. The sharp decline triggered a sell-off across markets worldwide, with Indian indices following suit. The Sensex tumbled over 2,200 points, while the Nifty50 dropped over 700 points. The rout was led by the Technology and Pharmaceutical sectors, as recession fears spread like wildfire.
The S&P 500, which is widely considered a benchmark for the US stock market, has been on a downward spiral since the start of the week. The index has lost over 10% of its value in just three trading days, sending shockwaves across the global financial landscape. The Nasdaq, which is heavily weighted with technology stocks, has entered bear territory, with a decline of over 20% from its recent highs.
The sell-off in the US markets was led by the Technology sector, which saw some of its biggest names such as Microsoft, Alphabet, and Amazon losing significant value. The sector, which had been a major driver of the recent market rally, is now facing intense selling pressure. The decline in the sector is attributed to concerns over the impact of rising interest rates on the industry’s growth prospects.
The selling pressure was not limited to the Technology sector, however. The Pharmaceutical sector, which had been a relative safe haven in recent years, also saw significant losses. The sector, which is heavily reliant on the US market, is facing headwinds due to the ongoing trade tensions and the potential impact of recession on demand.
The Indian markets, which had been relatively resilient in recent weeks, were not immune to the global sell-off. The Sensex and Nifty50 indices both saw their worst day in over a month, with the former dropping over 2,200 points and the latter losing over 700 points. The IT and Pharmaceutical sectors, which are major components of the Sensex and Nifty50, saw significant losses.
The decline in the Indian markets was attributed to the country’s close ties with the global economy. The Indian rupee, which had been strengthening in recent weeks, also saw significant losses, falling over 1% against the US dollar. The decline in the rupee is likely to put pressure on the country’s import costs and could have a negative impact on the overall economy.
The global sell-off has sparked concerns over the potential for a recession in the coming months. The yield curve, which had been steepening in recent weeks, has now inverted, with the 10-year Treasury yield falling below the 2-year yield. An inverted yield curve is often seen as a sign of a pending recession.
The decline in the US markets has also sparked concerns over the potential impact on the country’s economy. The Bureau of Economic Analysis (BEA) is set to release its latest GDP data on Thursday, which is expected to show a slowdown in growth. The data is likely to reinforce concerns over the potential for a recession and could lead to further selling pressure in the markets.
In conclusion, the global sell-off sparked by the decline in the S&P 500 has sent shockwaves across markets worldwide. The Indian markets, which had been relatively resilient in recent weeks, saw significant losses, with the Sensex and Nifty50 indices both dropping over 2% and 1% respectively. The IT and Pharmaceutical sectors, which are major components of the Sensex and Nifty50, saw significant losses, while the rupee fell over 1% against the US dollar. The decline has sparked concerns over the potential for a recession in the coming months and could have a significant impact on the global economy.
Source: https://www.thecore.in/podcasts/us-stocks-whacked-for-the-third-day-833088
