Financial analysts say that the decline in economic indicators of financial, industrial and IT companies was about 5%. All 30 major Dow Jones index positions that these segments occupy are falling before our eyes. The same picture is observed for the main positions of the Nasdaq index. Technology companies such as Apple, Twitter and Facebook fell 2.5%, 3.05% and 4.74% overnight.
The fall of indices began at trading in the United States: on Monday, the S&P 500 index fell by more than 4.2%, and the Dow Jones - by 4.5%.
Following this, Asian exchanges began to fall like dominoes: for example, the Japanese NIKKEI fell by 4.7%, and the Hong Kong Stock Exchange Hand Seng index - by 4.4%.
“People wake up in shock: January was a very good month, and then suddenly February came and everything exploded,” Kerry Craig, global markets strategist at JPMorgan Asset Management in Melbourne, described the situation to Bloomberg.
It is worth noting that this drop in the Dow Jones was the largest in the last ten years. A similar thing happened during this period only in October 2008, when the indices lost 1874 points. In just one day, on February 2, the Dow Jones index fell by 666 points or 2.5%.
Such a collapse of the main American stock index is directly related to the short-sighted official statements of US government officials.
On Friday, the US Department of Employment issued a statement that American incomes are growing too quickly, which means that this excess money supply could trigger inflation. In addition, dealers fear that the Federal Reserve may raise interest rates earlier and more than planned.
Monday's collapse of the American stock market has led to the fact that the world's 500 richest people have lost $114 billion of their assets.
This was a major blow to American companies, which lost more than $1 trillion. capitalization. For example, the parent company of Google, Alphabet, reduced its capitalization by $40 billion just overnight.
And Mark Zuckerberg, who spoke out against advertising cryptocurrencies on Facebook, lost $3.7 billion. Amazon is not doing any better: after the close of trading, shares of this company lost about 4%
Some crypto enthusiasts even speculated that temporary “rebounds” in the price of cryptocurrencies are associated with the fact that stock market investors are transferring their fiat to cryptocurrencies. But in the current situation, it is clear that when the global market crashes, investments in the crypto business also fall.
The events of the last two days show that the cryptocurrency and fiat markets are more connected than financial regulators want to present to the world. And that means they have to crawl out of the hole into which they are now falling together...
In the meantime, buckle up, we are flying into the turbulence zone!
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