S&P Tumbles 6% as Global Sell-off Jolts Indian Markets
The global financial markets were hit with a wave of panic selling on Wednesday, as the S&P 500 plunged 6% to its worst day since March 2020. The sharp decline in US markets triggered a global rout, with Indian indices following suit and crashing over 2,200 points. The sell-off has sent recession fears soaring, and investors are bracing for continued volatility across markets worldwide.
The S&P 500, a benchmark for the US stock market, closed at 3,923.77, its lowest level since September 2020. The Nasdaq Composite, which includes many technology and growth stocks, tumbled 8.5% to its worst day since 2020, and is now in bear territory. The Dow Jones Industrial Average fell 4.5%, its worst day since June 2020.
The global sell-off was sparked by a combination of factors, including concerns over the spread of COVID-19, supply chain disruptions, and higher interest rates. The market is also grappling with the prospect of a recession, which would be the first since the pandemic-induced downturn in 2020.
In India, the Sensex and Nifty crashed over 2,200 points, with the Sensex closing at 52,464.12, its lowest level since October 2020. The Nifty 50 index fell 2.4% to 15,767.70. IT and pharma stocks, which are major components of the Indian indices, were among the worst hit, with shares of Infosys, TCS, and Wipro down between 3-5%.
The Indian rupee also took a hit, falling to a record low against the US dollar. The currency has now lost over 10% of its value against the dollar in the past month, making imports more expensive and increasing inflationary pressures.
The sell-off has sent shockwaves through the global financial markets, with investors scrambling to cover their losses and protect their portfolios. The yield on the 10-year US Treasury note fell to its lowest level since November 2020, as investors sought safe-haven assets.
In a podcast interview with The Core, market analyst Vinod Nair said, “The global sell-off is a result of a perfect storm of factors, including COVID-19, supply chain disruptions, and higher interest rates. The market is also grappling with the prospect of a recession, which would be the first since the pandemic-induced downturn in 2020.”
Nair added, “The IT and pharma sectors are major components of the Indian indices, and they are among the worst hit. The sell-off has sent recession fears soaring, and investors are bracing for continued volatility across markets worldwide.”
The sell-off has also sent shockwaves through the cryptocurrency market, with Bitcoin and other digital currencies tumbling in value. The market is now waiting with bated breath for the US Federal Reserve’s next move, with many analysts expecting a rate hike in the coming months.
The global financial markets are in a state of turmoil, and investors are bracing for continued volatility in the coming days. The sell-off has sent recession fears soaring, and the market is now waiting with bated breath for the US Federal Reserve’s next move.
Source: https://www.thecore.in/podcasts/us-stocks-whacked-for-the-third-day-833088
