United States: markets plunge in the face of the prospect of a faster rate hike

Posted on Jan 6, 2022 at 6:20 amUpdated Jan 6, 2022, 7:09 AM

The prospect of a rate hike in the United States approached on Wednesday, to the chagrin of the financial markets. According to the minutes of the Fed’s mid-December meeting, participants felt that “it may be justified to raise the federal funds rate earlier or at a faster rate than they had expected.”

Details that have plunged the financial markets. The Dow Jones index ended the session on Wall Street Wednesday down 1.07%, to 36,407 points, and the S&P 500 lost 1.94%, to 4,700 points. But it was tech stocks that posted the strongest drop, with the Nasdaq Composite down 3.34% to 15,100 points. With rising interest rates in the sights, holding stocks of certain stocks would potentially become less attractive. The 10-year US Treasury bill rate rose six basis points to 1.71%.

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