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Indian Stock Market Overview

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The Fed raised the interest rate immediately by 75 basis points

The US Federal Reserve is fighting with a record for 40 years of inflation. So far, inflation is winning. Rate decision 15 June Fed - Federal Reserve, which performs the functions of the Central Bank, — raised the interest rate by 75 basis points. One basis point — 0,01%. The bet range is now 1.5-1.75%.

Shares of US companies fell sharply after data on high inflation

Macro statistics and the imminent meeting of the Fed dashed investors' hopes for a quick rebound in the US market. Inflation data 10 June, the US Bureau of Labor Statistics published inflation data in May. Consumer price growth accelerated again: compared to last year, they jumped to 8,6%. This is higher than the forecast in 8,3%.

A strong labor market puts pressure on US stocks

Investors believe, that good macroeconomic indicators will allow the Fed to aggressively tighten policy. New vacancies In early June, the US Bureau of Labor Statistics published May data. Over the past month, the number of jobs in the non-agricultural sector has increased by 390 thousand.

S&P 500 entered the bear market. This is how it ended before

History shows, that the US stock market may continue to fall in the near future. With or without a recession, a bear market is a drop in the index from a high of 20% or more.. Your maximum S&P 500 showed 3 January — 4800 points. This means, that the market will go bearish, if the index falls below 3840 points.

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