Stock Markets Fall Around the World
The stock market continued its downward trajectory from the previous week. The inflation warning issued by the Fed has reverberated throughout global markets.
Investors were unsettled by the Federal Reserve's determination to continue battling inflation even if it caused some economic hardship, which resulted in a downward trend for U.S. stock benchmarks and an upward trend for Treasury yields to start the week.
In the early going of trade, the S&P 500 experienced a loss of 0.3%, putting the benchmark index on track to add to its previous loss of 3.4% on Friday. While the technology-focused Nasdaq Composite Index saw its value decrease by 0.3%, the Dow Jones Industrial Average dropped 0.5% or almost 170 points.
As statements from executives at the Federal Reserve and other central banks on their desire to reign in rising prices continued to echo, markets throughout the world maintained their downward trend from the previous week and sank further on Monday.
In the early going of trading on Monday, the S&P 500 dropped by 0.6 percent, adding to losses recorded on Friday, when the benchmark index posted its largest daily dip since June. In a speech that day that was carefully observed, the head of the Federal Reserve, Jerome H. Powell, stated that the central bank must continue raising interest rates to combat the most rapid inflation in several decades. He cautioned that the effort to slow the economy would come at the expense of workers and total growth if it were successful.
Monday was a bad day for the stock market in Asia, Europe, and the rest of the world. During trading in the afternoon, the Stoxx 600 had a decline of more than 1 percent. Benchmark indexes in Japan and Korea both lost more than 2 percent.
Other central bankers who attended the Fed meeting in Wyoming reiterated Mr. Powell's desire to contain inflation, even if it meant the economy would suffer due to his actions.