Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Stock Market tumbles as interest rate hikes draw near

The stock market experienced a massive fall on Monday given the fast-approaching release of the inflation data and increased interest rates. There was a significant decline in US stocks values caused by a decrease in the large-cap bond purchase. The US yields continued to surge as bond market participants are now securing their profits. The treasury yield grew to its highest in three years yesterday, with the dollar index coming above 100.

This so alarmed investors as such a high yield over three years in the benchmark US 10-year count would start to slow the economy and diminish future yields. Most investors now look ahead to the forthcoming Fed meeting for signs of what impact inflation will have on corporate profits.

Virtually all US stocks lost significant value yesterday. This is because most investors preferred to withdraw their investment and watch the new policy unfold before they can now decide which to buy again.

The US stocks such as Nasdaq composite fell 3%, S&P was down by 2.1&, Dow Jones was down by 2.1%, US100 fell by 2.37%, Apple fell by 2.55%, Tesla - 4.85%, Netflix - 2.33% and so on.

The Fed has hinted earlier that the interest rate hike this time will come sooner than expected and they hope to increase the interest rate by 50 bps. The inflation data for executing these interest rate hikes are expected to be released during this month's next Fed meeting. 

It is always a wise decision to purchase stocks when their prices are meagre. Hence many believe that the current dip is simply an opportunity for new investors to feel their portfolio against future demands. 

Last Updated: 12/04/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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