S&P tumbles 6% as global sell-off jolts Indian markets
The S&P 500 index plummeted 6% on Wednesday, its worst day since March 2020, as a global sell-off swept across markets worldwide. This sudden and sharp decline has sent shockwaves through the financial world, with Indian indices following suit and plummeting over 2,200 points.
The sudden downturn can be attributed to a combination of factors, including concerns over inflation, interest rates, and the ongoing COVID-19 pandemic. The sell-off has been particularly brutal, with the Nasdaq composite index now officially in bear territory, defined as a decline of 20% or more from its previous high.
As investors scrambled to adjust their portfolios, IT and pharma stocks took a significant hit, with many top companies in these sectors seeing their valuations plummet. The likes of TCS, Infosys, and HCL Technologies were among the hardest hit, with their stock prices falling by as much as 5% in a single day.
The sell-off has been fueled by fears of a recession, with many economists and analysts warning that the global economy is headed for a slowdown. The US Federal Reserve has already raised interest rates several times this year, and there are concerns that further hikes could exacerbate the situation.
In India, the Sensex and Nifty indices both fell sharply, with the Sensex plummeting over 2,200 points to close at 56,446. The Nifty 50 index fell by over 650 points to close at 16,731. The broader markets also saw significant declines, with the BSE Midcap and Smallcap indices falling by over 4% and 5%, respectively.
The rout has been attributed to a combination of factors, including concerns over the economic outlook, inflation, and the impact of the pandemic on global supply chains. The sell-off has been particularly brutal, with many investors scrambling to adjust their portfolios and reduce their exposure to risk.
In the US, the S&P 500 index has now fallen by over 15% from its previous high, while the Nasdaq composite index has fallen by over 20%. The Dow Jones Industrial Average has also fallen by over 10% from its previous high.
The sell-off has been fueled by concerns over inflation, with many investors worried that the rapid rise in prices could lead to a recession. The US Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose by 0.6% in May, exceeding expectations and sparking concerns over inflation.
The impact of the sell-off has been felt across the globe, with many Asian markets also falling sharply. The Nikkei 225 index in Japan fell by over 2.5%, while the Hang Seng index in Hong Kong fell by over 3%. European markets also fell sharply, with the DAX index in Germany falling by over 3% and the FTSE 100 index in the UK falling by over 2%.
In conclusion, the recent sell-off in global markets has sent shockwaves through the financial world, with Indian indices falling sharply in response. The sell-off has been fueled by concerns over inflation, interest rates, and the ongoing pandemic, and has seen many investors scrambling to adjust their portfolios and reduce their exposure to risk. As the global economy continues to grapple with these challenges, investors will be closely watching the markets for any signs of a turnaround.
News Source: https://www.thecore.in/podcasts/us-stocks-whacked-for-the-third-day-833088
