Amid the impact of increased interest rates executed by the US Feds earlier this year, Wall Street in New York concluded its worst year since 2008 on December 30.&nbsp;The S&amp;P 500, a key US stock index, fell 19.4 per cent in 2022 as policy effects to fight inflation gave rise to increased interest rates by Federal Reserve bodies around the world.&nbsp;Nasdaq 100, another important stock index dropped 33 per cent in 2022.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/2022-when-global-economy-started-bleeding-547838">2022: When global economy started bleeding</a>

Bonds in the US market lost 16 per cent of their value, the biggest decline since at least 1990. This was also because of the same reason; increased interest rates by the central banks to slow rising consumer prices.

It was the worst year in more than a decade for global equities and bonds—but it’s finally over, said a Bloomberg report.&nbsp;

'2023 to be a bumpy ride'

Experts cited in the US media say that the post-pandemic 2022 experience will give a "rearview mirror" perspective to buyers and investors in 2023.&nbsp;

WATCH |&nbsp;<a href="https://www.wionews.com/videos/gravitas-us-stocks-lose-7-trillion-in-2022-478749">Gravitas: US stocks lose $7 trillion in 2022</a>

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-us-stocks-lose-7-trillion-in-2022-478749/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

 
"The good news is that we will soon put the year in the rearview mirror,” Art Hogan, chief market strategist at Los Angeles-based B. Riley Wealth, told Bloomberg.

"The bad news is that 2023 could be a bumpy ride, at least for the first few months," he added.

As the U.S. economy heads toward a possible recession, the Federal Reserve may raise interest rates further.&nbsp;Higher interest rates are central banks’ primary tool for controlling&nbsp;inflation.

When rates rise, borrowing costs also increase, slowing demand in the economy and in theory tempering further price increases.

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1  width=&quot;100%&quot;"></iframe>

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

Amid the impact of increased interest rates executed by the US Feds earlier this year, Wall Street in New York concluded its worst year since 2008 on December 30.

Amid the impact of increased interest rates executed by the US Feds earlier this year, Wall Street in New York concluded its worst year since 2008 on December 30. The S&P 500, a key US stock index, fell 19.4 per cent in 2022 as policy effects to fight inflation gave rise to increased interest rates by Federal Reserve bodies around the world. Nasdaq 100, another important stock index dropped 33 per cent in 2022. ALSO READ | 2022: When global economy started bleeding Bonds in the US market lost 16 per cent of their value, the biggest decline since at least 1990. This was also because of the same reason; increased interest rates by the central banks to slow rising consumer prices. It was the worst year in more than a decade for global equities and bonds—but it’s finally over, said a Bloomberg report. '2023 to be a bumpy ride' Experts cited in the US media say that the post-pandemic 2022 experience will give a "rearview mirror" perspective to buyers and investors in 2023. WATCH | Gravitas: US stocks lose $7 trillion in 2022 × "The good news is that we will soon put the year in the rearview mirror,” Art Hogan, chief market strategist at Los Angeles-based B. Riley Wealth, told Bloomberg. "The bad news is that 2023 could be a bumpy ride, at least for the first few months," he added. As the U.S. economy heads toward a possible recession, the Federal Reserve may raise interest rates further. Higher interest rates are central banks’ primary tool for controlling inflation. When rates rise, borrowing costs also increase, slowing demand in the economy and in theory tempering further price increases. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Wall Street braces for a 'bumpy' 2023 after worst year since 2008

Wall Street's major averages closed low ways today with tech heavy NASDAQ two percent drop leading losses. Investors are worried the data showing resilient economy would lead us that deserve to keep high kicking interest rates for longer.

World Business Watch: Wall Street tumbles on rate, recession worries

The stock market's darkest days are yet to come. Some of the most severe downfalls&nbsp;the index suffered over the first 10 months of the year have been somewhat offset by Wall Street's mini-rebound since mid-October. It increased by more than 10 per cent&nbsp;since its low two months ago and ended the day Monday just around 4,000. Many analysts forecast&nbsp;that if the Federal Reserve eventually stops raising interest rates to bring rising inflation under control, equities will end in 2023 at least in this area, if not slightly higher. But many of Wall Street also anticipate that stock prices will decline significantly in the meantime before we reach that final destination.

Take Morgan Stanley, which estimates that within the first three months of the new year, the S&amp;P 500 could fall all the way to a range between 3,000 and 3,300. Accordingly, it might lose up to 25 per cent&nbsp;of its value from Monday's closing level. The bottom end of that range would be 37.5 per cent&nbsp;lower than the previous high, which was established in early 2022.

The bank is pessimistic because its strategists predict significantly lower corporate earnings than those of the rest of Wall Street. Businesses are under pressure to increase revenue while manufacturing and other sectors of the economy are deteriorating. However, Morgan Stanley predicts that once firms made sacrifices, increasing wage expenses will limit profitability.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/with-uncertain-saudi-help-and-imf-loan-pakistans-economic-woes-hit-new-low-543222">With uncertain Saudi help and IMF loan, Pakistan's economic woes hit new low</a>

Additionally, Goldman Sachs strategists projected a low in the first half of the year, probably near 3,600. Based on Goldman Sachs' prediction that the economy can avoid a recession, it would be a decline of close to 10 per cent&nbsp;from Monday's closing.

Goldman strategists led by David Kostin predicted that the S&amp;P 500 may drop as low as 3,100 if the economy does really collapse as many on Wall Street anticipate.

Also watch&nbsp;|&nbsp;Sri Lanka expecting $5 bn in loans from multilateral agencies

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/sri-lanka-expecting-5-bn-in-loans-from-multilateral-agencies-543227/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The U.S. economy will experience a recession in the second half of 2023, according to strategists at Deutsche Bank. The German bank forecasts that the recession will persist into the last six months of the year, and that may push the S&amp;P 500 as low as 3,250 before it reaches its bottom.&nbsp;According to the strategists led by Binky Chadha, assuming equities follow their usual playbook during recessions, the S&amp;P 500 could conclude the year as high as 4,500.

(With inputs from agencies)

WATCH WION LIVE HERE:

<iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed" style="width:100%;max-width:560px;" width="560"></iframe>

The stock market's darkest days are yet to come. Some of the most severe downfalls the index suffered over the first 10 months of the year have been somewhat offset by Wall Street's mini-rebound since mid-October.

The stock market's darkest days are yet to come. Some of the most severe downfalls the index suffered over the first 10 months of the year have been somewhat offset by Wall Street's mini-rebound since mid-October. It increased by more than 10 per cent since its low two months ago and ended the day Monday just around 4,000. Many analysts forecast that if the Federal Reserve eventually stops raising interest rates to bring rising inflation under control, equities will end in 2023 at least in this area, if not slightly higher. But many of Wall Street also anticipate that stock prices will decline significantly in the meantime before we reach that final destination. Take Morgan Stanley, which estimates that within the first three months of the new year, the S&P 500 could fall all the way to a range between 3,000 and 3,300. Accordingly, it might lose up to 25 per cent of its value from Monday's closing level. The bottom end of that range would be 37.5 per cent lower than the previous high, which was established in early 2022. The bank is pessimistic because its strategists predict significantly lower corporate earnings than those of the rest of Wall Street. Businesses are under pressure to increase revenue while manufacturing and other sectors of the economy are deteriorating. However, Morgan Stanley predicts that once firms made sacrifices, increasing wage expenses will limit profitability. Also read | With uncertain Saudi help and IMF loan, Pakistan's economic woes hit new low Additionally, Goldman Sachs strategists projected a low in the first half of the year, probably near 3,600. Based on Goldman Sachs' prediction that the economy can avoid a recession, it would be a decline of close to 10 per cent from Monday's closing. Goldman strategists led by David Kostin predicted that the S&P 500 may drop as low as 3,100 if the economy does really collapse as many on Wall Street anticipate. Also watch | Sri Lanka expecting $5 bn in loans from multilateral agencies The U.S. economy will experience a recession in the second half of 2023, according to strategists at Deutsche Bank. The German bank forecasts that the recession will persist into the last six months of the year, and that may push the S&P 500 as low as 3,250 before it reaches its bottom. According to the strategists led by Binky Chadha, assuming equities follow their usual playbook during recessions, the S&P 500 could conclude the year as high as 4,500. (With inputs from agencies) WATCH WION LIVE HERE:

Wall Street may get lot worse before getting better in 2023, forecast analysts

US&nbsp;stock indexes closed sharply lower on Thursday (December 15), with each of the major averages suffering their biggest daily percentage drop in weeks, as fears intensified that the Federal Reserve's battle against inflation using aggressive interest rate hikes could lead to a recession.

The US&nbsp;central bank hiked rates by 50 basis points (bps) on Wednesday as was widely expected, downsizing from the consecutive 75 bps hikes at its prior four meetings, but Fed Chair Jerome Powell warned recent signs of inflation were not enough to convince Fed the battle against rising prices had been won.

“The investors were hoping that the Fed would hint that they will finish their rate tightening program by the first quarter of 2023 and begin a rate reduction program by the end of the year,”said Sam Stovall, chief investment strategist at CFRA Research.

“It (the Fed) delayed when they are likely to start cutting interest rates until 2024. So I think that's what's causing investors to say time to get defensive once again because a recession is likely around the corner.”

The Fed projected continued rate hikes to above 5% in 2023, a level not seen since a steep economic downturn in 2007.

“The Fed doesn't care about the stock market. They've said it multiple times. But investors seem to feel that because the Federal Reserve for the last 20 years has come to a rescue every time, that they're going to do it this time.’ said Ken Moraif, founder and CEO of Retirement Planners of America.

“If you think of inflation as cancer, you think of recession is the flu. Given a choice of which one you want, it's the flu. And so if they're going to drive us into a recession, that's they're going to do it.”

The S&amp;P 500 lost 99.57 points, or 2.49%, to end at 3,895.75 points, while the Nasdaq Composite lost 360.36 points, or 3.19%, to 10,810.53.

The Dow Jones Industrial Average fell 764.13 points, or 2.25%, to 33,202.22.

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

WATCH WION LIVE HERE

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false"><iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

&nbsp;

US stock indexes closed sharply lower on Thursday (December 15), with each of the major averages suffering their biggest daily percentage drop in weeks, as fears intensified that the Federal Reserve's battle against inflation using aggressive interest rate hikes could lead to a recession.

US stock indexes closed sharply lower on Thursday (December 15), with each of the major averages suffering their biggest daily percentage drop in weeks, as fears intensified that the Federal Reserve's battle against inflation using aggressive interest rate hikes could lead to a recession. The US central bank hiked rates by 50 basis points (bps) on Wednesday as was widely expected, downsizing from the consecutive 75 bps hikes at its prior four meetings, but Fed Chair Jerome Powell warned recent signs of inflation were not enough to convince Fed the battle against rising prices had been won. “The investors were hoping that the Fed would hint that they will finish their rate tightening program by the first quarter of 2023 and begin a rate reduction program by the end of the year,”said Sam Stovall, chief investment strategist at CFRA Research. “It (the Fed) delayed when they are likely to start cutting interest rates until 2024. So I think that's what's causing investors to say time to get defensive once again because a recession is likely around the corner.” The Fed projected continued rate hikes to above 5% in 2023, a level not seen since a steep economic downturn in 2007. “The Fed doesn't care about the stock market. They've said it multiple times. But investors seem to feel that because the Federal Reserve for the last 20 years has come to a rescue every time, that they're going to do it this time.’ said Ken Moraif, founder and CEO of Retirement Planners of America. “If you think of inflation as cancer, you think of recession is the flu. Given a choice of which one you want, it's the flu. And so if they're going to drive us into a recession, that's they're going to do it.” The S&P 500 lost 99.57 points, or 2.49%, to end at 3,895.75 points, while the Nasdaq Composite lost 360.36 points, or 3.19%, to 10,810.53. The Dow Jones Industrial Average fell 764.13 points, or 2.25%, to 33,202.22. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Wall Street slumps as Fed heightens recession fears

The United States Federal Reserve following its last meeting of the year on Wednesday announced another interest rate hike, this time by half a percentage point making this its seventh time this year. Furthermore, the officials have also said that the central bank will deliver more interest rate hikes in 2023, in a bid to tame decade-high inflation in the country.&nbsp;

The interest rate, which is now at its highest in the last 15 years, seems to be reducing inflation to some degree as the US CPI data shows that the annual inflation has slowed down from 7.7 per cent in October to 7.1 per cent in November. However, Federal Reserve Chair Jerome Powell said that the recent slowing down has not been reassuring that the fight has been won.

Why is the Fed raising the interest rates?

When an economy is booming and inflation is on the rise, an increase in the interest rates slows everything down by making borrowing more expensive and&nbsp;discouraging consumers and businesses to spend more. This decrease in spending typically slows the economy and cools down inflation.&nbsp;

These hikes are also in line with the central bank’s goal to push inflation down to two per cent. So far, the Feds have been aggressively raising the interest rate as the country continues to battle high inflation, this time around, the&nbsp;benchmark was raised&nbsp;by half a point as opposed to the string of four straight three-quarter point hikes&nbsp;in the past couple of months.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/us-federal-reserve-raises-interest-rate-by-075-again-in-a-bid-to-combat-inflation-530687">In a historic move, US Federal Reserve raises interest rate by 0.75% again</a>

Furthermore, the interest rate hike announced on Wednesday also marked the highest fed funds rate since December 2007 during the onset of the global financial crisis of 2008. However, this trend may continue for the upcoming year as it is projected that the rates would rise above five per cent by the end of next year, which is now somewhere between the 4.25 per cent to 4.5 per cent range.&nbsp;

What does it mean for American consumers?

The federal funds rate, set by the central bank, is the interest rate at which the commercial banks borrow and lend from one another overnight. Consequently, it directly or indirectly affects the borrowing costs for consumers and their earnings on savings accounts.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/fed-lifts-benchmark-rate-by-half-percentage-point-543120">Fed lifts benchmark rate by half percentage point</a>

As of now, this leads many Americans to lean on credit as they are affected at a time when they are facing higher prices due to inflation as well as an unprecedented rise in interest rates which has not been witnessed in the past decade or so.

Notably, the Fed does not control all interest rates; rather it's a ripple effect, which begins with the central bank raising the interest rates and others following suit. Some of these interest rates affected include mortgages, credit cards, and other loans.&nbsp;

Chief financial analyst at Bankrate, Greg McBride, said, “Credit card rates are at a record high and still increasing. Auto loan rates are at an 11-year high. Home equity lines of credit are at a 15-year high. And online savings account and CD yields haven’t been this high since 2008.”&nbsp;

The New York-based consumer financial services firm, Bankrate also noted that the average credit card rate hit a record high of 19.40 per cent (as of December 7) which is up from 16.3 per cent since the beginning of the year. Consequently, with the recent hike consumers can also witness an increase in their credit card rates within a few statements.&nbsp;

ALSO WATCH |&nbsp;<a href="https://www.wionews.com/videos/world-business-watch-us-announces-7th-interest-rate-hike-of-2022-543170">World Business Watch: U.S. announces 7th interest rate hike of 2022</a>

Therefore, McBride suggests transferring any balances on the credit cards to a zero-rate balance transfer card which locks in a zero rate between a year and 21 months, this would “insulate you from rate hikes” giving the consumer a “clear runway” to pay off their debt. He added, “Less debt and more savings will enable you to better weather rising interest rates, and is especially valuable if the economy sours.”

As for mortgages, the recent Fed hike would affect millions. Freddie Mac, an enterprise promoting home lending, said that with every percentage point increase in mortgage rates, which is eventually affected by the increase in the central bank’s benchmark rate, households which can afford a $400,000 mortgage decline by three to four million.&nbsp;

Furthermore, according to the federally funded company, the 30-year fixed-rate mortgage average was 6.33 per cent by the end of the second week of December which is more than double the same time last year, for the first time in US history. This comes as mortgage rates have been rising over the past year or so which has also affected at least 15 million potential homebuyers.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/us-securities-regulator-issue-new-guidelines-on-disclosing-cryptocurrency-risks-541559">US securities regulator issues new guidelines for firms, makes cryptocurrency risk disclosure must</a>

The 30-year average at one point had peaked above seven per cent, however, the decrease is not enough to help buyer affordability, said McBride. Furthermore, with mortgage rates rising faster than home prices dropping, Americans will be forced to spend more which could add to the financial stress of high inflation, said a report by NBC. Therefore, with more hikes in the Fed interest rate on the horizon, mortgage rates may climb further.&nbsp;

How has the market reacted to the latest hike?

Interest rate hikes typically create volatility in the stock market and this time was no different. Following the announcement, the Dow Jones Industrial Average fell 142.29 points or 0.42 per cent, while S&amp;P 500 lost 24.33 points or 0.61 per cent and the Nasdaq Composite dropped 85.93 points, or 0.76 per cent, reported Reuters.&nbsp;

Notably, three major averages on Wall Street might witness a yearly decline for the first time since 2018 as well as their biggest annual percentage decline since the financial crisis of 2008. This comes as nearly all 11 major S&amp;P 500 sectors ended in negatives on Wednesday with healthcare being an exception, while financials were down 1.29 per cent making it the worst performing sector.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/dollar-gains-broadly-as-upbeat-us-data-muddles-fed-rate-hike-views-540382">Dollar gains broadly as upbeat US data muddles Fed rate hike views</a> 
 
Meanwhile, the condition of Asian stocks was no better, on Thursday, following the announcement and declines on Wall Street, Japan’s Nikkei dropped 0.42 per cent, while Australia’s S&amp;P/ASX 200 fell 0.62 per cent, Hong Kong’s Hang Seng witnessed a decline of 1.13 per cent and South Korea’s Kospi tumbled 1.32 per cent.&nbsp;

The decline has also been attributed to a rise in COVID-19 cases in China and crude oil’s downturn after strong gains a day prior. Additionally, while Beijing moves to open its economy after lifting its stringent zero-Covid restrictions, the slowed factory output and fewer retail sales in November continued to affect its outlook.&nbsp;

What has the Fed forecasted for the upcoming year?

On Wednesday, following the announcement of the interest rate hike, Powell also said that more interest rate hikes are on the horizon for the upcoming year while the US economy is in the midst of possibly slipping into recession. The Fed officials also projected a rise in the unemployment rate from the current 3.6 per cent to 4.6 per cent for the upcoming year. &nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/poll-shows-that-the-us-economy-is-headed-for-a-shallow-recession-heres-what-it-means-541596">Poll shows that the US economy is headed for a shallow recession: Here’s what it means</a>

Currently, the rate of unemployment is increasing by 0.5 per cent annually and by the end of 2023, it would be well beyond what has historically been associated with recession. However, Powell has said that they don’t “talk about this kind of recession, that kind of a recession. We just make these forecasts.”

During the press conference, following the meeting of the Federal Reserve’s Federal Open Market Committee (FOMC), he also said that there is no “completely painless way to restore price stability” and they are doing the best they can. However, even with the recent aggressive hikes, inflation remains at least three times higher than their target and they speculate it will take at least three years for things to fall back.&nbsp;

ALSO WATCH |&nbsp;<a href="https://www.wionews.com/videos/fitch-inflation-and-fed-hikes-to-drive-us-economy-into-recession-526566">Fitch: Inflation and fed hikes to drive US economy into recession</a>

“The inflation data received so far in October and November show a welcome reduction in the pace of price increases, but it will take substantially more evidence to give confidence inflation is on a sustained downward path,” said Powell.&nbsp; 
 
(With inputs from agencies)&nbsp; 
 
&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

The United States Federal Reserve following its last meeting of the year on Wednesday announced another interest rate hike, this time by half a percentage point making this its seventh time this year.

The United States Federal Reserve following its last meeting of the year on Wednesday announced another interest rate hike, this time by half a percentage point making this its seventh time this year. Furthermore, the officials have also said that the central bank will deliver more interest rate hikes in 2023, in a bid to tame decade-high inflation in the country. The interest rate, which is now at its highest in the last 15 years, seems to be reducing inflation to some degree as the US CPI data shows that the annual inflation has slowed down from 7.7 per cent in October to 7.1 per cent in November. However, Federal Reserve Chair Jerome Powell said that the recent slowing down has not been reassuring that the fight has been won. Why is the Fed raising the interest rates? When an economy is booming and inflation is on the rise, an increase in the interest rates slows everything down by making borrowing more expensive and discouraging consumers and businesses to spend more. This decrease in spending typically slows the economy and cools down inflation. These hikes are also in line with the central bank’s goal to push inflation down to two per cent. So far, the Feds have been aggressively raising the interest rate as the country continues to battle high inflation, this time around, the benchmark was raised by half a point as opposed to the string of four straight three-quarter point hikes in the past couple of months. ALSO READ | In a historic move, US Federal Reserve raises interest rate by 0.75% again Furthermore, the interest rate hike announced on Wednesday also marked the highest fed funds rate since December 2007 during the onset of the global financial crisis of 2008. However, this trend may continue for the upcoming year as it is projected that the rates would rise above five per cent by the end of next year, which is now somewhere between the 4.25 per cent to 4.5 per cent range. What does it mean for American consumers? The federal funds rate, set by the central bank, is the interest rate at which the commercial banks borrow and lend from one another overnight. Consequently, it directly or indirectly affects the borrowing costs for consumers and their earnings on savings accounts. ALSO READ | Fed lifts benchmark rate by half percentage point As of now, this leads many Americans to lean on credit as they are affected at a time when they are facing higher prices due to inflation as well as an unprecedented rise in interest rates which has not been witnessed in the past decade or so. Notably, the Fed does not control all interest rates; rather it's a ripple effect, which begins with the central bank raising the interest rates and others following suit. Some of these interest rates affected include mortgages, credit cards, and other loans. Chief financial analyst at Bankrate, Greg McBride, said, “Credit card rates are at a record high and still increasing. Auto loan rates are at an 11-year high. Home equity lines of credit are at a 15-year high. And online savings account and CD yields haven’t been this high since 2008.” The New York-based consumer financial services firm, Bankrate also noted that the average credit card rate hit a record high of 19.40 per cent (as of December 7) which is up from 16.3 per cent since the beginning of the year. Consequently, with the recent hike consumers can also witness an increase in their credit card rates within a few statements. ALSO WATCH | World Business Watch: U.S. announces 7th interest rate hike of 2022 Therefore, McBride suggests transferring any balances on the credit cards to a zero-rate balance transfer card which locks in a zero rate between a year and 21 months, this would “insulate you from rate hikes” giving the consumer a “clear runway” to pay off their debt. He added, “Less debt and more savings will enable you to better weather rising interest rates, and is especially valuable if the economy sours.” As for mortgages, the recent Fed hike would affect millions. Freddie Mac, an enterprise promoting home lending, said that with every percentage point increase in mortgage rates, which is eventually affected by the increase in the central bank’s benchmark rate, households which can afford a $400,000 mortgage decline by three to four million. Furthermore, according to the federally funded company, the 30-year fixed-rate mortgage average was 6.33 per cent by the end of the second week of December which is more than double the same time last year, for the first time in US history. This comes as mortgage rates have been rising over the past year or so which has also affected at least 15 million potential homebuyers. ALSO READ | US securities regulator issues new guidelines for firms, makes cryptocurrency risk disclosure must The 30-year average at one point had peaked above seven per cent, however, the decrease is not enough to help buyer affordability, said McBride. Furthermore, with mortgage rates rising faster than home prices dropping, Americans will be forced to spend more which could add to the financial stress of high inflation, said a report by NBC. Therefore, with more hikes in the Fed interest rate on the horizon, mortgage rates may climb further. How has the market reacted to the latest hike? Interest rate hikes typically create volatility in the stock market and this time was no different. Following the announcement, the Dow Jones Industrial Average fell 142.29 points or 0.42 per cent, while S&P 500 lost 24.33 points or 0.61 per cent and the Nasdaq Composite dropped 85.93 points, or 0.76 per cent, reported Reuters. Notably, three major averages on Wall Street might witness a yearly decline for the first time since 2018 as well as their biggest annual percentage decline since the financial crisis of 2008. This comes as nearly all 11 major S&P 500 sectors ended in negatives on Wednesday with healthcare being an exception, while financials were down 1.29 per cent making it the worst performing sector. ALSO READ | Dollar gains broadly as upbeat US data muddles Fed rate hike views Meanwhile, the condition of Asian stocks was no better, on Thursday, following the announcement and declines on Wall Street, Japan’s Nikkei dropped 0.42 per cent, while Australia’s S&P/ASX 200 fell 0.62 per cent, Hong Kong’s Hang Seng witnessed a decline of 1.13 per cent and South Korea’s Kospi tumbled 1.32 per cent. The decline has also been attributed to a rise in COVID-19 cases in China and crude oil’s downturn after strong gains a day prior. Additionally, while Beijing moves to open its economy after lifting its stringent zero-Covid restrictions, the slowed factory output and fewer retail sales in November continued to affect its outlook. What has the Fed forecasted for the upcoming year? On Wednesday, following the announcement of the interest rate hike, Powell also said that more interest rate hikes are on the horizon for the upcoming year while the US economy is in the midst of possibly slipping into recession. The Fed officials also projected a rise in the unemployment rate from the current 3.6 per cent to 4.6 per cent for the upcoming year. ALSO READ | Poll shows that the US economy is headed for a shallow recession: Here’s what it means Currently, the rate of unemployment is increasing by 0.5 per cent annually and by the end of 2023, it would be well beyond what has historically been associated with recession. However, Powell has said that they don’t “talk about this kind of recession, that kind of a recession. We just make these forecasts.” During the press conference, following the meeting of the Federal Reserve’s Federal Open Market Committee (FOMC), he also said that there is no “completely painless way to restore price stability” and they are doing the best they can. However, even with the recent aggressive hikes, inflation remains at least three times higher than their target and they speculate it will take at least three years for things to fall back. ALSO WATCH | Fitch: Inflation and fed hikes to drive US economy into recession “The inflation data received so far in October and November show a welcome reduction in the pace of price increases, but it will take substantially more evidence to give confidence inflation is on a sustained downward path,” said Powell. (With inputs from agencies) WATCH WION LIVE HERE

US Federal Reserve raises interest rate for 7th time this year: Here’s what it means

Goldman Sachs aims to cut at least a few hundred more jobs as the Wall Street titan restructures its struggling consumer business and braces for an uncertain economy in the year ahead.

World Business Watch: Goldman Sachs to cut hundreds more jobs as consumer unit scaled back

Austerity seems to be the pointer in the rule book of the gold global bank - Goldman Sachs and this will translate into reduction in bonuses of traders. Cost-cutting pressures will eat into the bonuses of many of the Goldman Sachs traders this year even as the bank is expecting a strong revenue growth.

WION Dispatch: Goldman Sachs executives face bonus cuts; 20% decline in bonuses for Wall St bankers

It is not just tech giants like Meta and Twitter that are going for massive lay-offs, some big Wall Street banks are also cutting hundreds of jobs. Barclays has got about 200 across its banking and trading desks this week.

WION Business News | Wall Street lay-offs: Citigroup, Barclays cut hundreds of jobs

Wall Street major Morgan Stanley is expected to start a fresh round of layoffs globally in the coming weeks, as dealmaking business takes a hit due to rising inflation and an economic downturn.

Morgan Stanley to reduce employee headcount in coming weeks as dealmaking slows

US lawmakers have slammed the Wall Street executives over their plan to attend Hong Kong Summit. As per experts, US presence could be used to increase foreign investment.

WION Fineprint| Wall Street slammed over plan to attend Hong Kong Summit

On Friday, global and European markets increased as Wall Street continued to rise amid expectations that certain central banks will scale down their rate hikes.&nbsp;

A rising US&nbsp;dollar reduced the value of commodities. Following the expansion of Covid limitations by top crude importer China, oil prices fell.&nbsp;

The STOXX index for Europe recovered from session lows of as much as 1.1 per cent&nbsp;to close up 0.1 per cent&nbsp;at a five-week high. Prior to that, Amazon's disappointing estimates on Thursday hurt the tech sector in Europe, while the possibility of further Covid&nbsp;restrictions in China hurt mining and oil companies.

The 47-country MSCI main global index increased by 0.92 per cent. It gained for a second week in a row as investors processed conflicting earnings and economic data.&nbsp;

By 1:52 pm&nbsp;ET, the Dow Jones Industrial Average had increased by 2.43 per cent. (1752 GMT). The Nasdaq Composite increased 2.42 per cent&nbsp;and the S&amp;P 500 increased 2.14 per cent, with advances in Apple due to positive results countering Amazon's sombre warning.&nbsp;

Also Read:<a href="https://www.wionews.com/world/let-the-good-times-roll-musk-says-after-becoming-the-new-twitter-boss-529241">&nbsp;‘Let the good times roll’: Musk says after becoming the new Twitter boss</a>

"This stock market clearly wants to go higher and is growing confident that next week's Fed-driven fireworks will include the beginning of a deliberation to tighten at a slower pace," said Edward Moya, senior market analyst at OANDA in New York.

Consumer spending in the United States rose more than anticipated in September, and the Federal Reserve is on course to raise interest rates by 75 basis points for the fourth time this year. At the same time, underlying inflation pressures continued to soar.

(with inputs from agencies)

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1  width=&quot;100%&quot;"></iframe>

On Friday, global and European markets increased as Wall Street continued to rise amid expectations that certain central banks will scale down their rate hikes. A rising US dollar reduced the value of commodities.

On Friday, global and European markets increased as Wall Street continued to rise amid expectations that certain central banks will scale down their rate hikes. A rising US dollar reduced the value of commodities. Following the expansion of Covid limitations by top crude importer China, oil prices fell. The STOXX index for Europe recovered from session lows of as much as 1.1 per cent to close up 0.1 per cent at a five-week high. Prior to that, Amazon's disappointing estimates on Thursday hurt the tech sector in Europe, while the possibility of further Covid restrictions in China hurt mining and oil companies. The 47-country MSCI main global index increased by 0.92 per cent. It gained for a second week in a row as investors processed conflicting earnings and economic data. By 1:52 pm ET, the Dow Jones Industrial Average had increased by 2.43 per cent. (1752 GMT). The Nasdaq Composite increased 2.42 per cent and the S&P 500 increased 2.14 per cent, with advances in Apple due to positive results countering Amazon's sombre warning. Also Read: ‘Let the good times roll’: Musk says after becoming the new Twitter boss "This stock market clearly wants to go higher and is growing confident that next week's Fed-driven fireworks will include the beginning of a deliberation to tighten at a slower pace," said Edward Moya, senior market analyst at OANDA in New York. Consumer spending in the United States rose more than anticipated in September, and the Federal Reserve is on course to raise interest rates by 75 basis points for the fourth time this year. At the same time, underlying inflation pressures continued to soar. (with inputs from agencies)

Wall Street's upswing lifts global and European markets while oil prices decline

Many financial institutions have predicted that the world is headed for another recession.

As rising inflation leads to a hike in interest rates, companies across the world have announced a freeze in hiring and planning to downsize their staff.

On Tuesday, the United Nations warned of an impending global slowdown that may likely be worse than the financial crisis in 2008 and the COVID-19 shock in 2020.

In its Trade and Development Report 2022, the UN Conference on Trade and Development (UNCTAD) warned that the world is “on the edge of a recession” and developing nations like those in Asia could bear the brunt of it.

It said that monetary and fiscal policies in advanced economies — including continued interest rate hikes — could push the world towards a global recession and stagnation.

Economists have given a myriad of reasons for the current recession predictions. Here are some of the five key indicators that suggest a lull in the economy worldwide.

US dollar

The US dollar has been surging for the past few months. It’s now the strongest it has been in two decades, and experts believe the value will grow even stronger in the coming days.

But this surge in the value of the power of the greenback is agitating the economies and markets worldwide, and creating winners and losers.

Though a strong dollar bodes well for the Americans, the consequences are faced by other countries, especially the developing ones.

The rise of US dollar has led to a decline in the value of UK pound, the euro, China’s yuan, Japan’s yen, India’s rupee and many others.

As a result, it makes it more expensive for these nations to import essential items like food and fuel.

In response, central banks in a bid to fight surging inflation and to shore up the value of their own currencies end up raising rates higher

US economy faltering

The key driver of the US economy is shopping. They live by the motto ‘shop till you drop’.

But recently, their spending amount has taken a massive hit. And the reason is linked to the US Fed rate hike.

The central bank has raised interest rates at a historic pace, making mortgage rates to the highest level in decades, and clipping the wings of the business. &nbsp;

Though the Fed hikes rates to taper down inflation, it gives a short-term shock to consumers whose borrowing power decreases for a brief period.

Corporate America tightens purse strings

Though the business prospered in 2020 despite the Covid shocks thanks to the American spenders, it has not been smooth sailing for the past few months, especially in the wake of the Russian invasion of Ukraine, reports CNN.

In mid-September, FedEx, which operates in more than 200 countries and whose performance signals the strength of the market, revised its outlook.

It warned that demand was softening, and earnings were likely to take a hit by more than 40 per cent.

Moreover, last week, Apple cut back on its production of the iPhone 14 after assessing subdued demand. &nbsp;The move took a toll on its shares as it fell by 4 per cent.

Bear makes an entry into Wall Street

According to CNN, Wall Street is now on track for its worst year since 2008.

After inflation set in, the Fed raised interest rates giving a brutal blow to the stock market.

The S&amp;P 500, the broadest measure of Wall Street —&nbsp;and the index responsible for the bulk of Americans’ 401(k)s — is down nearly 24 per cent for the year. Moreover, all three major US indexes are&nbsp;in bear markets— down at least 20 per cent from their most recent highs.

A similar situation has arisen in Europe, where the bond yields are spiking as central banks follow the Fed’s lead in raising rates to shore up their own currencies.

War and inflation

The Russia-Ukraine war and the resultant inflation spike have caused the most harm to the people of the United Kingdom&nbsp;

The UK has been struggling with surging prices since COVID-19, followed by the trade disruptions created by Russia’s invasion of Ukraine.

After the West imposed sanctions on Russian gas, energy prices have soared and supplies have dwindled.

The Britishers, who are grappling with the cost-of-living crisis with 10 per cent inflation, are raising concerns over higher borrowing costs that make millions of homebuyers’ monthly mortgage payments go up by hundreds or even thousands of pounds, reports CNN.

When would recession hit?

While there is a general consensus on the impending global recession, many analysts predict it to happen sometime in 2023. But, no one has predicted how severe it will be or how long it will last.

(With inputs from agencies)

WATCH WION LIVE HERE: 

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

Many financial institutions have predicted that the world is headed for another recession. As rising inflation leads to a hike in interest rates, companies across the world have announced a freeze in hiring and planning to downsize their staff.

Many financial institutions have predicted that the world is headed for another recession. As rising inflation leads to a hike in interest rates, companies across the world have announced a freeze in hiring and planning to downsize their staff. On Tuesday, the United Nations warned of an impending global slowdown that may likely be worse than the financial crisis in 2008 and the COVID-19 shock in 2020. In its Trade and Development Report 2022, the UN Conference on Trade and Development (UNCTAD) warned that the world is “on the edge of a recession” and developing nations like those in Asia could bear the brunt of it. It said that monetary and fiscal policies in advanced economies — including continued interest rate hikes — could push the world towards a global recession and stagnation. Economists have given a myriad of reasons for the current recession predictions. Here are some of the five key indicators that suggest a lull in the economy worldwide. US dollar The US dollar has been surging for the past few months. It’s now the strongest it has been in two decades, and experts believe the value will grow even stronger in the coming days. But this surge in the value of the power of the greenback is agitating the economies and markets worldwide, and creating winners and losers. Though a strong dollar bodes well for the Americans, the consequences are faced by other countries, especially the developing ones. The rise of US dollar has led to a decline in the value of UK pound, the euro, China’s yuan, Japan’s yen, India’s rupee and many others. As a result, it makes it more expensive for these nations to import essential items like food and fuel. In response, central banks in a bid to fight surging inflation and to shore up the value of their own currencies end up raising rates higher US economy faltering The key driver of the US economy is shopping. They live by the motto ‘shop till you drop’. But recently, their spending amount has taken a massive hit. And the reason is linked to the US Fed rate hike. The central bank has raised interest rates at a historic pace, making mortgage rates to the highest level in decades, and clipping the wings of the business. Though the Fed hikes rates to taper down inflation, it gives a short-term shock to consumers whose borrowing power decreases for a brief period. Corporate America tightens purse strings Though the business prospered in 2020 despite the Covid shocks thanks to the American spenders, it has not been smooth sailing for the past few months, especially in the wake of the Russian invasion of Ukraine, reports CNN. In mid-September, FedEx, which operates in more than 200 countries and whose performance signals the strength of the market, revised its outlook. It warned that demand was softening, and earnings were likely to take a hit by more than 40 per cent. Moreover, last week, Apple cut back on its production of the iPhone 14 after assessing subdued demand. The move took a toll on its shares as it fell by 4 per cent. Bear makes an entry into Wall Street According to CNN, Wall Street is now on track for its worst year since 2008. After inflation set in, the Fed raised interest rates giving a brutal blow to the stock market. The S&P 500, the broadest measure of Wall Street — and the index responsible for the bulk of Americans’ 401(k)s — is down nearly 24 per cent for the year. Moreover, all three major US indexes are in bear markets— down at least 20 per cent from their most recent highs. A similar situation has arisen in Europe, where the bond yields are spiking as central banks follow the Fed’s lead in raising rates to shore up their own currencies. War and inflation The Russia-Ukraine war and the resultant inflation spike have caused the most harm to the people of the United Kingdom The UK has been struggling with surging prices since COVID-19, followed by the trade disruptions created by Russia’s invasion of Ukraine. After the West imposed sanctions on Russian gas, energy prices have soared and supplies have dwindled. The Britishers, who are grappling with the cost-of-living crisis with 10 per cent inflation, are raising concerns over higher borrowing costs that make millions of homebuyers’ monthly mortgage payments go up by hundreds or even thousands of pounds, reports CNN. When would recession hit? While there is a general consensus on the impending global recession, many analysts predict it to happen sometime in 2023. But, no one has predicted how severe it will be or how long it will last. (With inputs from agencies) WATCH WION LIVE HERE:

Five signs why global economy is headed for recession

US financial watchdogs have fined some of Wall Street's biggest companies a total of $1.8bn after it was found that the staff discussed deals and trades on their personal devices and apps, BBC reported. The Securities and Exchange Commission (SEC) says the investigation uncovered "pervasive off-channel communications". Barclays, UBS and Goldman Sachs were among the 16 firms named by regulators.

The SEC issued statements about the fines totalling $1.1 billion, while the Commodity Futures Trading Commission said it had imposed $710 million of penalties.

"Finance, ultimately, depends on trust. By failing to honour their recordkeeping and books-and-records obligations, the market participants we have charged today have failed to maintain that trust," SEC chair Gary Gensler said.

It further said that from January 2018 through September 2021, bank workers routinely talked to their colleagues, clients and other third party advisers through apps on their personal devices, such as text messages and WhatsApp.

Most of those chats weren't preserved either, violating federal rules that require broker-dealers and other financial institutions to keep records of business communications. In absence of records, regulators couldn't ensure compliance with key rules and gather evidence in unrelated probes, the agencies said.

Some bankers have lost their jobs following the investigation. It has also forced companies to introduce tough new measures to stamp out unauthorised use of apps.

(With inputs from agencies)

&nbsp;

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

US financial watchdogs have fined some of Wall Street's biggest companies a total of $1.8bn after it was found that the staff discussed deals and trades on their personal devices and apps, BBC reported.

US financial watchdogs have fined some of Wall Street's biggest companies a total of $1.8bn after it was found that the staff discussed deals and trades on their personal devices and apps, BBC reported. The Securities and Exchange Commission (SEC) says the investigation uncovered "pervasive off-channel communications". Barclays, UBS and Goldman Sachs were among the 16 firms named by regulators. The SEC issued statements about the fines totalling $1.1 billion, while the Commodity Futures Trading Commission said it had imposed $710 million of penalties. "Finance, ultimately, depends on trust. By failing to honour their recordkeeping and books-and-records obligations, the market participants we have charged today have failed to maintain that trust," SEC chair Gary Gensler said. It further said that from January 2018 through September 2021, bank workers routinely talked to their colleagues, clients and other third party advisers through apps on their personal devices, such as text messages and WhatsApp. Most of those chats weren't preserved either, violating federal rules that require broker-dealers and other financial institutions to keep records of business communications. In absence of records, regulators couldn't ensure compliance with key rules and gather evidence in unrelated probes, the agencies said. Some bankers have lost their jobs following the investigation. It has also forced companies to introduce tough new measures to stamp out unauthorised use of apps. (With inputs from agencies)

16 Wall Street firms fined $1.8bn over staff indulging in 'off-channel communications'

Wall Street’s major indexes ended a choppy session on Monday as investors looked to this week’s policy meeting at the Federal Reserve and how aggressively it will raise prices.

World Business Watch: Wall Street ends choppy session higher with firm focus on Fed

Ever since the Consumer Price Index report was released, the US stock market has continued to take a beating. On Friday, according to a Reuters report, Wall Street stumbled to its two-month low as fears of a global recession loomed amid a slowdown.

Ever since the Consumer Price Index report was released, the US stock market has continued to take a beating. On Friday, according to a Reuters report, Wall Street stumbled to its two-month low as fears of a global recession loomed amid a slowdown. Reportedly, all three major US stock indices fell well below their numbers set in the month of June. The Dow dropped 139. 40 points to close at 30,822 while S&P 500 closed the week by siding 0.72 per cent. Lastly, Nasdaq Composite slide 0.9 per cent to finish at 11,448. "It’s been a tough week. It feels like Halloween came early. We are facing this toxic brew of high inflation, high-interest rates and low growth, which isn’t good for stock or bond markets." said David Carter, managing director of JP Morgan. It is pertinent to note that the fear of global slowdown amongst the stock market investors was expedited after FedEx released a dystopian earning report. The company's revenue fell about $300 million below company forecasts which hastened the warning that a slowdown was impending. WATCH | World Business Watch: FedEx shares fall as global volume plunge × Moreover, to get ahead of the curve, banking major Goldman Sachs is planning to fire hundreds of its employees as early as next week. Reportedly, the layoffs will mark the resumption of its annual practice which was halted the last two years due to the pandemic. It is pertinent to note that on the day the CPI report showed inflation hitting a worse-than-expected mark of '8.3' per cent, US President Joe Biden threw an 'inflation reduction' party at his official residence at the White House. "Exactly four weeks ago, I signed the Inflation Reduction Act into law. So today, we're celebrating. Tune in at 3 PM ET as I deliver remarks and welcome the leaders and advocates who made it happen to the People's House." tweeted President Biden from his official Twitter account. Read more: Biden parties as stock market tumbles, inflation worsens and Fed indicates rate hike Experts believe that after inflation numbers continued to hit a 40-year record high, the US central bank, the Federal Reserve may be hiking interest rates for a record fifth time this year, next week. (With inputs from agencies) WATCH WION LIVE HERE:

As recession fears mount, Wall Street tumbles to a two-month low

5 Chinese state-owned companies have decided to delist from the New York Stock Exchange. More Chinese companies could follow suit. Is this the beginning of a decoupling? Palki Sharma tells you more.

Gravitas: 5 Chinese companies to leave wall street

Apple reported fiscal third-quarter earnings on Thursday that beat Wall Street expectations for sales and profit but showed slowing growth for the iPhone maker. Apple stock rose over 3% in extended trading.

iPhone sales rise by 3% in 3rd quarter despite glum economy

In a world which is still feeling the after-effects of a deadly global pandemic and simultaneously witnessing a geopolitical modern war unfold; investors everywhere are assessing the long-term consequences of these events.

In a world which is still feeling the after-effects of a deadly global pandemic and simultaneously witnessing a geopolitical modern war unfold; investors everywhere are assessing the long-term consequences of these events. The concoction of the aforementioned circumstances has led experts to cast a warning that we stand at the cusp of a global recession, primarily due to rising inflation and the destruction of supply chains. Now, three Wall Street leaders have laid down three warning signs that could be the precursor to an economic downturn. One, that is expected to dwarf 'The Great Recession' of 2008. A deadlier future pandemic Sam Bankman-Fried, Co-founder, FTX believes that the world is not prepared to handle yet another future pandemic. Especially, one, that is much more deadly and has a higher fatality rate. COVID-19 showed the absolute worst of humankind as people fought over trivial matters and remained divided on the best way to fight the invisible enemy. "There was no coordination in terms of what the response should be. If you look at where we are today, we have not started putting any of those processes in place that we should have had last time," said Sam. Sam considers that Covid has had a massive negative impact on the world economy. Sky-high inflation, rising interest rates and limping stock market are a few of the indicators that our Covid mitigation programmes did more harm than good. Thus, if a future pandemic was to arrive just now, the economic order of the world will go for a toss as we are not remotely prepared. Read More: Major economies to enter recession in the next 12 months: Report Labour shortage Meanwhile, Abby Joseph Cohen, a Columbia Business School professor and former senior investment strategist at Goldman Sachs is of the view that a reduction in the labour force, whether it be the service sector or research and development field, could cause the next big financial catastrophe. Citing the example of America, Cohen remarked that the country was built on the foundations laid by the immigrants. These foreigners came to American soil, made it their own and contributed to the growth story, which allowed America's GDP to dwarf that of nearly every nation on the planet, for close to a century. However, the recent trend of not being welcome enough towards immigrants had had a negative effect. Not only the economy is shrinking in real time with high inflation, but the lack of labour strength also means that there will be no future scientists, doctors or engineers coming to the fore. Cohen is worried that the pipeline is not being created. The fabled 'American Dream' is fading as successive generations are finding it extremely hard to do better than their predecessors. The wages have not risen, and the median income has not kept up with inflation. Ultimately, the middle class is finding it difficult to maintain stability. And if the health of the middle class deteriorates, a country can fall apart on seams, says Cohen. "What has happened is that this rise in inflation has pulled apart the curtains. Now we see much more clearly where these problems are and where the issues are." Deglobalisation of the world order Lastly, Ken Moelis, Founder and CEO, Moelis & Co. is of the view that deglobalisation of the planet, which has already started, may affect the countries that do not have ample resources to sustain on their own. Earlier, a country like Germany had outsourced everything, right from its military to the USA to financial management to the EU and energy supply as well as end market to Russia and China respectively. However, in the immediate aftermath of the Russia-Ukraine crisis and a sluggish Chinese economy, Berlin has been seen huffing and puffing. While Germany still may have the resources to get back on its feet, owing to its developed nation status, other small nations, particularly the African nations, may not have the same luxury. These countries have grown in a major way due to globalisation. However, if the cycle stops, they may soon go bust. "Each country will move to protect their own citizens. And as a result, they might deglobalize ahead of you," stated Ken. (With inputs from agencies) WATCH WION LIVE HERE:

Global recession incoming? Three Wall Street leaders enlist possible reasons for the economic doomsday

Wall Street stocks fell on Thursday, finishing solidly lower after US data showed persistently high inflation pinching consumer spending. The broad-based S&amp;P 500 finished at 3,785.38, down 0.9 per cent for the day and a loss of more than 16 per cent for the last six months, the worst first half of a year since 1970. 
&nbsp; 
The Dow Jones Industrial Average shed 0.8 per cent to 30,775.43, while the tech-rich Nasdaq Composite Index tumbled 1.3 per cent to 11,028.74. The market has fallen most of the year, breaking the trend only in late March and for other brief stretches in a reasonably steady retreat. 
&nbsp; 
A series of bad inflation readings have prompted the Federal Reserve to undertake increasingly aggressive measures to try to rein in growth and pricing pressures. Two weeks ago, the central bank enacted a supersized three-quarter of a point interest rate hike, the biggest increase in nearly 30 years. Markets are weighing whether to expect the same thing in July. 
&nbsp; 
Commerce Department data showed spending rose just 0.2 per cent in May, less than half the increase in April and part of a steady downward drift as consumers pull back amid surging prices. The report also showed that the price index rose 6.3 per cent compared to May 2021, the same annual pace as in the prior month -- a positive sign in the Federal Reserve's battle against inflation.

Also Read:&nbsp;<a href="https://www.wionews.com/world/iskon-temple-in-northern-island-becomes-sanctuary-for-devotees-fleeing-ukraine-493532">ISKCON temple in Northern Ireland becomes sanctuary for devotees fleeing Ukraine</a> 
&nbsp; 
But when inflation is taken into account, the data show a decline in real consumer spending. 
&nbsp; 
As reported by AFP, Tom Cahill of Ventura Wealth Management said, "Inflation came in a little bit better than expected today but probably not good enough to prevent the Federal Reserve to raise interest rates 75 basis points at the next meeting." 
&nbsp; 
"At the same time we had the personal spending coming in negative for the month in real terms," Cahill said. "People are starting to get the sense that perhaps the Federal Reserve is going to push the economy into recession," he added. 
&nbsp; 
(with inputs from agencies) 
&nbsp; 
&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

Wall Street stocks fell on Thursday, finishing solidly lower after US data showed persistently high inflation pinching consumer spending. The broad-based S&P 500 finished at 3,785.

Wall Street stocks fell on Thursday, finishing solidly lower after US data showed persistently high inflation pinching consumer spending. The broad-based S&P 500 finished at 3,785.38, down 0.9 per cent for the day and a loss of more than 16 per cent for the last six months, the worst first half of a year since 1970. The Dow Jones Industrial Average shed 0.8 per cent to 30,775.43, while the tech-rich Nasdaq Composite Index tumbled 1.3 per cent to 11,028.74. The market has fallen most of the year, breaking the trend only in late March and for other brief stretches in a reasonably steady retreat. A series of bad inflation readings have prompted the Federal Reserve to undertake increasingly aggressive measures to try to rein in growth and pricing pressures. Two weeks ago, the central bank enacted a supersized three-quarter of a point interest rate hike, the biggest increase in nearly 30 years. Markets are weighing whether to expect the same thing in July. Commerce Department data showed spending rose just 0.2 per cent in May, less than half the increase in April and part of a steady downward drift as consumers pull back amid surging prices. The report also showed that the price index rose 6.3 per cent compared to May 2021, the same annual pace as in the prior month -- a positive sign in the Federal Reserve's battle against inflation. Also Read: ISKCON temple in Northern Ireland becomes sanctuary for devotees fleeing Ukraine But when inflation is taken into account, the data show a decline in real consumer spending. As reported by AFP, Tom Cahill of Ventura Wealth Management said, "Inflation came in a little bit better than expected today but probably not good enough to prevent the Federal Reserve to raise interest rates 75 basis points at the next meeting." "At the same time we had the personal spending coming in negative for the month in real terms," Cahill said. "People are starting to get the sense that perhaps the Federal Reserve is going to push the economy into recession," he added. (with inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Wall Street stocks fall as S&P 500 concludes worst H1 class shares since 1970

Today is the last trading day of the week and clearly, it's not going to be as good as it was last year. Yesterday, US stock markets closed sharply lower in a broad sell-off.

Wall Street plunges as recession fear grows

A bear market is growling on Wall Street. S&P 500 has confirmed the presence of a bear market. Inflation fears are dragging S&P 500 into a bear market.

Bear market growls on Wall Street | Recession next?

Stock markets plunged deeper into the red on Friday after data showed US inflation soared to the highest level in more than 40 years in May, far outpacing analyst's&nbsp;expectations.&nbsp;

On&nbsp;Wall&nbsp;Street, stocks were deep in negative territory after US government data showed inflation reached 8.6 percent in the 12 months ended in May, the steepest rise in consumer prices since December 1981, on the back of surging energy and food prices.

Also read |&nbsp;<a href="https://www.wionews.com/world/asian-shares-fall-as-oil-lingers-above-usd-120-yen-sinks-486499">Asian shares fall as oil lingers above USD 120, yen sinks</a>

The S&amp;P 500 dropped 2.9%, closing out its ninth losing week in the last 10.

The data had been eagerly anticipated as investors hungrily look for clues as to the direction of US interest rates at next week's meeting of the Federal Reserve.

"The market had expected that we'd see at least a plateauing or flattening out of inflation but it seems that inflation pressures continue to build and we've seen a further broadening of price pressures", said Shaun Osborne, a foreign exchange specialist at Scotiabank.&nbsp;

"So it seems more entrenched, stickier kind of price or inflation situation", he further added.

Watch |&nbsp;Bitcoin: World's largest cryptocurrency drops as Wall Street shares tumble

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/bitcoin-worlds-largest-cryptocurrency-drops-as-wall-street-shares-tumble-477759/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Osborne said the report will encourage investor debate on whether the US central bank will shift to a 75 basis point interest rate hike next week instead of the planned half-point increase.

But Osborne believes the Fed will go with its original plan, considering a bigger increase would look "panicky".

Adding to the unease was news that officials in China had once again locked down millions of people for Covid testing owing to another flare-up in cases, dealing a blow to hopes for an economic reopening.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/dollar-gains-as-us-stocks-fall-ecb-decision-on-tap-486375">Dollar gains as US stocks fall, ECB decision on tap</a>

"Warning signs about the economy are emerging as weekly (US) jobless claims are starting to rise, China's Covid situation will prove troublesome for supply chains over the next couple of quarters, and as inflationary pressures broaden and show no sign of easing", said Edward Moya, analyst at OANDA trading group.

"It seems reductions in global growth forecasts will become a steady theme over the next few months and that should complicate how much more tightening we see from central banks", he said.

The World Bank and Organisation for Economic Co-operation and Development this week each lowered their global economic growth forecasts for 2022.

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

Stock markets plunged deeper into the red on Friday after data showed US inflation soared to the highest level in more than 40 years in May, far outpacing analyst's expectations.

Stock markets plunged deeper into the red on Friday after data showed US inflation soared to the highest level in more than 40 years in May, far outpacing analyst's expectations. On Wall Street, stocks were deep in negative territory after US government data showed inflation reached 8.6 percent in the 12 months ended in May, the steepest rise in consumer prices since December 1981, on the back of surging energy and food prices. Also read | Asian shares fall as oil lingers above USD 120, yen sinks The S&P 500 dropped 2.9%, closing out its ninth losing week in the last 10. The data had been eagerly anticipated as investors hungrily look for clues as to the direction of US interest rates at next week's meeting of the Federal Reserve. "The market had expected that we'd see at least a plateauing or flattening out of inflation but it seems that inflation pressures continue to build and we've seen a further broadening of price pressures", said Shaun Osborne, a foreign exchange specialist at Scotiabank. "So it seems more entrenched, stickier kind of price or inflation situation", he further added. Watch | Bitcoin: World's largest cryptocurrency drops as Wall Street shares tumble Osborne said the report will encourage investor debate on whether the US central bank will shift to a 75 basis point interest rate hike next week instead of the planned half-point increase. But Osborne believes the Fed will go with its original plan, considering a bigger increase would look "panicky". Adding to the unease was news that officials in China had once again locked down millions of people for Covid testing owing to another flare-up in cases, dealing a blow to hopes for an economic reopening. Also read | Dollar gains as US stocks fall, ECB decision on tap "Warning signs about the economy are emerging as weekly (US) jobless claims are starting to rise, China's Covid situation will prove troublesome for supply chains over the next couple of quarters, and as inflationary pressures broaden and show no sign of easing", said Edward Moya, analyst at OANDA trading group. "It seems reductions in global growth forecasts will become a steady theme over the next few months and that should complicate how much more tightening we see from central banks", he said. The World Bank and Organisation for Economic Co-operation and Development this week each lowered their global economic growth forecasts for 2022. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Wall Street stocks sank after inflation hit a 40-year high

Bitcoin is no exception and following the plunge on Wall Street yesterday, World's largest cryptocurrency Bitcoin has also fallen to its lowest level since July of 2021.

Bitcoin: World's largest cryptocurrency drops as Wall Street shares tumble

From Google to Meta: Tech giants dominating Wall Street's trillion-dollar club

wall-street

Wall Street, News on Wall Street, stories on Wall Street, articles on Wall Street, Wall Street stories at Wion, Wall Street news, Wall Street latest news