Saturday , June 19 2021

A wave of sell-offs hit stock markets, investors are scared of expensive prices

The Dow Jones Index, which includes shares of the top 30 companies in the US, fell 1.36% to 36.24, the fastest one-day decline in nearly three months. However, the other two key US stock indexes are also failing. The S&P 500 fell to an all-time high on Monday, the Nasdaq Comprehensive Technology Index being the worst day of the week since March.

Sleep analysts warn of a major bubble rising on stock exchanges

Shocks could also be felt on stock exchanges in Europe, when the pan-European Stocks 600 index fell two percent on the day. The last time it dropped extremely fast last time. The major stock exchanges in Frankfurt, Paris and London were even more bullish. So far, they have not implemented the decline on Erie Tuesday and have been largely stable. The common denominator of stock cancellation was the rising cost of living in the world’s largest economy.

US inflation rose to 2.6 percent in March, prompting the Fed’s central bank to keep its target below 2 percent. Among investors, it is feared that the Fed will intervene and raise interest rates, which has kept the record low due to this epidemic. Further, April’s inflation will rise to 3.6 percent, the highest since 2011, according to analysts’ estimates.

“Consensus is set to increase inflation to 3.6 percent. The effect of the low base effect will be clearly suppressed, and the effect of more expensive energy will be noticeably greater. In addition, there was a clear mention of inflation in regular announcements of financial results for US companies, up to 800 percent year-over-year. In regards to Bank of America data, it was written by Yahoo Facebook.

“Markets are just unable to address inflation concerns that have prevented a resurgence of the watchdog,” senior investment officer EG Bell Russia-Mold told the BBC. Similar concerns have been raised by analysts around the world for several months. The unprecedented wealth that states are pumped into by epidemic diseases will sooner or later be attracted to rising prices.

“Free” money account

The US Bill of Code-19 would be classical in this regard. In March, President Biden signed a $ 1.9 trillion (approximately $ 40 trillion) financial aid package, which also includes $ 1,400 in direct support that most Americans received in the check box.

U.S. lawmakers suggest they are willing to bear the big burden if this economic recovery comes to an end, Bloomberg said. However, job creation is an important indicator in this regard, and recent labor market data shows that this is not happening yet.

The US economy created about 266,000 new jobs in April, surprising 6.1 percent to 6 percent in March. Analysts unanimously hope that about 1 million new jobs will be added. In the history of this survey, it never happened that the expert didn’t hit “Gus” like that, noted the magazine Forbes.

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