October 17, 2021

Taylor Daily Press

Complete News World

Wall Street had its worst losing day since May

US stocks turned deep red on Tuesday. The impact of higher interest rates on technology stocks. The Nasdaq Composite Index tumbled 2.8 percent.

The yield on 10-year US government bonds briefly rose to more than 1.53 percent, the highest level since mid-June. The interest rate hike is due to The imminent phase-out of the emergency stimulus announced by the Federal Reserve.

Investors received more worrying news. Treasury Secretary Janet Yellen warned in a letter to members of Congress that the Treasury will be empty by October 18 unless Congress agrees to suspend or raise the US government’s debt ceiling. Republicans are currently blocking Democrats’ attempts to raise the bar.

Yellen also said he expects inflation to approach 4 percent by the end of this year. So it appears that high inflation is lasting longer than expected.

The US housing market is now overheated. In July, home prices rose an average of 19.7 percent after having already increased by 18.7 percent in June. The increase in prices is due to very strong demand and supply that cannot be kept up due to logistical problems and shortage of manpower.

The American consumer is also becoming more gloomier. Consumer confidence unexpectedly fell to 109.3 points in September from 115.2 points (the revised number) in August.

In front of the closing bell were dark red numbers on the plates. Dow Jones

Lost 1.6 percent and the Standard & Poor’s 500 fell 2 percent. The Nasdaq Composite Index, which includes several technology companies, fared worse with a 2.8 percent loss. These are the biggest losses since May.

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chip companies

Among the tech giants, Google’s parent company Alphabet sank

3.65 percent, Amazon

2.6 percent on Facebook

3.7 percent. Higher interest rates make technology companies less attractive to investors because future profits become less valuable.

The chip companies took an additional hit. Lisa Su, CEO of Advanced Micro Devices

(AMD), said Monday at a conference in Beverly Hills that the global shortage of semiconductors will begin to ease next year. She believes that the situation is improving step by step with the availability of more production capacity. AMD fell 6.2 percent, and chip equipment maker Applied Materials posted a 6.8 percent loss.

Oil prices moved slightly but reached their highest level in three years. The booming economy is resulting in a strong demand for oil, a demand exacerbated by the gas crisis in Europe. Like Monday, oil prices were higher, albeit to a lesser degree. Schlumberger Service Company

2.4 percent won and ExxonMobil

1 percent.