S&P Tumbles 6% as Global Sell-off Jolts Indian Markets
Global markets are reeling as the S&P 500 plunged 6% yesterday, marking its worst day since March 2020. The sudden sell-off has triggered a global rout, with Indian indices following suit and shedding significant value. The Sensex, the benchmark index of the Indian stock market, fell by over 2,200 points, leaving investors scrambling to make sense of the sudden volatility.
The S&P 500’s 6% drop is a stark reminder of the uncertainty that has gripped markets worldwide. The index, which has been a bellwether for the global economy, has been battered by a combination of factors, including recession fears, rising inflation, and a slowdown in growth.
The sell-off has been particularly brutal for technology and pharmaceutical stocks, which have been among the biggest beneficiaries of the COVID-19 pandemic. IT and pharma companies, which were once darlings of the market, are now among the biggest losers as investors seek safer havens.
The Nasdaq, which is dominated by technology stocks, has entered bear territory, a phenomenon that has not been seen since the 2008 financial crisis. The index’s 12% drop in the past two days has left investors reeling, with many wondering if the market has reached a turning point.
The global sell-off has not spared Indian markets, which have been particularly vulnerable to the sudden volatility. The Sensex, which has been trading in a tight range for several months, has broken its support levels, raising concerns about a potential correction.
The biggest losers in the Indian market have been IT and pharma stocks, which have been among the biggest gainers in recent years. Companies like TCS, Infosys, and Wipro, which were once considered safe havens, have seen their stocks plummet, with some declining by as much as 10% in a single day.
The pharma sector has also been hit hard, with companies like Sun Pharma and Dr. Reddy’s seeing significant declines. The sector, which has been a bright spot for Indian markets, is now facing headwinds, with investors growing increasingly concerned about the impact of recession on demand.
So, what is driving the sudden sell-off? The answer lies in a combination of factors, including recession fears, rising inflation, and a slowdown in growth. The US Federal Reserve’s decision to raise interest rates has sent shockwaves through the market, with investors growing increasingly concerned about the impact of higher borrowing costs on the economy.
The global economy is also facing headwinds, with many countries experiencing a slowdown in growth. The eurozone, which is the largest economy in the world, is facing a severe recession, with many countries experiencing a contraction in GDP.
India, which has been a bright spot for the global economy, is also not immune to the slowdown. The country’s GDP growth has slowed significantly in recent months, with many analysts warning of a potential recession.
In the wake of the sudden sell-off, investors are left wondering what the future holds. Will the market continue to fall, or will it find a bottom? The answer lies in a combination of macroeconomic factors, including inflation, interest rates, and growth.
For now, investors are bracing for continued volatility across markets worldwide. The Nasdaq’s entry into bear territory is a stark reminder of the uncertainty that has gripped markets, and many are wondering if the worst is yet to come.
In conclusion, the S&P’s 6% drop is a stark reminder of the uncertainty that has gripped global markets. The sell-off has been particularly brutal for technology and pharmaceutical stocks, which have been among the biggest beneficiaries of the COVID-19 pandemic.
Indian markets have also been hit hard, with the Sensex falling by over 2,200 points. The biggest losers have been IT and pharma stocks, which have been among the biggest gainers in recent years. As investors navigate the uncertain terrain, it is clear that recession fears are spreading fast, pulling stocks lower across the board.
Source:
https://www.thecore.in/podcasts/us-stocks-whacked-for-the-third-day-833088
