Dow Jones Industrials, which brings together the 30 largest companies in the country, lost 8.8% overall, and the decline was sharper for the selective S&P 500 (-19.4%) and Nasdaq index (-33%), which brought together some. tech companies are going bankrupt After years of stargazing.
According to analytics firm Fidelity, nearly all corporate industries reject this practice. red numbersfirst, communications (-41%), non-core products (-37%) and technology (-29%), which included some of the biggest losers such as Tesla (-65%) and Meta (-64%).
This the exception sector has been Energyshowing an increase of 56% Especially after the start of the war in Ukraine, parallel to the increase in oil and gas prices and although they contributed to inflation, they left slushy profits in the accounts of their companies.
Inflation, determination
One of the determining factors in the downward course of the US market is Inflation, which is thought to be temporary but has reached its highest level in the last 40 yearsIt peaked at 9.1% in June, causing the Federal Reserve to increase interest rates aggressively from March.
Inflation began to fall and the labor market doesn’t seem offended right nowHowever, the central bank, which slowed the rate hike this December, expected unemployment to rise in 2023 and shadow of stagnation It scared the markets.
Investors are on the lookout for signs that often predict a recession, such as an inversion of the public debt yield curve;
In addition to the stock market crash, one of the worst years in memory for fixed income as well as large volatility in raw materials and dollar boost César González, chief financial officer of Avanza Previsión, points out in a note against other currencies.
Musk, layoffs and FTX
There is news that unleashes volatility in the daily life of Wall Street. the process of buying twitter 44,000 million by Elon Musk, the richest man in the world, after which the social network stopped trading on the stock market and carried out massive layoffs.
Twitter has joined Layoff wave and hiring freeze Meta has benefited the most from the trend of working and playing from home digitally after the outbreak of the pandemic in 2020, undertaken by big tech companies like Amazon, Microsoft or Netflix.
It hasn’t been a good year for the cryptocurrency market either. a ‘crypto winter’ seems to have arrived It can be attributed to the bursting of a bubble and the exposure of fraudulent activities, as in the case of the once respected and now bankrupt FTX platform.
This bitcoinsmost widely used digital currencyIt fluctuated around $16,500 at the close of the US market, from levels close to $45,000 at the beginning of the year, reaching a record high of 65,000 in 2021. cumulative annual decline of 65%.