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BREAKING
Al Mayadeen's correspondent: One was killed, another injured in a raid by an Israeli drone on the city of Khiam in South Lebanon
London views possibility of setting fire to tanker in port of friendly country to Russia to damage port infrastructure, initiate an international probe: Moscow
One of London's scenarios involves setting up accident with 'undesirable' tanker in one of the bottlenecks of maritime communications: Russian foreign intelligence agency
London plans to organize major sabotage with tankers to declare transportation of Russian oil to international shipping: Russian foreign intelligence agency
UK intelligence agencies plan to use NATO allies to launch massive raid on 'Shadow Fleet': Russian foreign intelligence agency
Palestinian Ministry of Health: Two were martyred in Israeli shelling that targeted a besieged house in the town of Qabatiya in Jenin
At least 68 dead in migrant shipwreck off Yemen: IOM
Trump: We want to feed the people in Gaza, we do not want them to starve.
US President Donald Trump: We will impose sanctions on Russia if it does not end the war on Ukraine.
Israeli media: Polls show that 52% oppose Prime Minister Benjamin Netanyahu while only 29% support him.

US stocks reach record low value in a year, recession looming

  • By Al Mayadeen English
  • Source: Agencies
  • 17 Jun 2022 15:06
3 Min Read

The US stocks are taking a hit as the Federal Reserve hikes rates.

  • x
  • Dow Jones Industrial Average falls below 30,000
    Dow Jones Industrial Average falls below 30,000

The Dow Jones Industrial Average fell 700 points below 30,000 for the first time in over a year, emphasizing plummeting US stocks.

Now both in bear markets, S&P 500 and Nasdaq Composite are down but approximately 23% and 34% respectively, relative to their highs in January 2022 and November 2021. In specific, S&P 500 index is down by 3.2% while Nasdaq Composite slid by 4%. Furthermore, the Dow also dropped about 19% relative to its recent highs.

This came after the rate hike by the US Federal Reserve. The Fed has been for the past few months aggressively hiking interest rates to try and lower rising prices, but its efforts did not materialize in May, with consumer prices hitting four-decade highs. Consumer prices in May rose 8.6% and soared over what economists thought was the peak in March.

Read more: We'd have to borrow money from China to aid Ukraine: US Senator

The Western sanctions on Moscow have cut supply chains, pushing Russia out of the global energy market that is already troubled by the uncertainties surrounding supply due to the COVID-19 pandemic.

The US central bank has already indicated that it had plans to hike interest rates on loans this week and throughout July, but it is looking like the Fed is more likely to increase the aggressiveness of its policies put in place to combat inflation. That would drastically affect the national economy and increase the chances of recession.

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US consumers feeling pinch of rising inflation amid Trump tariffs

Trump-aligned congresswoman refers Fed Chair Powell to DoJ for perjury

Fed Chair, Jerome Powell, warned on Wednesday, as he revised this year’s GDP outlook downward and the outlook for unemployment and inflation upward that “it is not going to be easy.” 

In a critical response, Quincy Krosby, chief equity strategist for LPL Financial, told CNN that “markets believed and applauded Chairman Powell’s resolve to fight rising inflationary pressures. And that’s the problem.” 

Earlier this month, the consumer price index (CPI) jumped 8.6% compared to May 2021, up from 8.3% in the 12 months ending in April and topping what most economists thought was the peak of 8.5% in March.

Read more: US stock losses increase ahead of Friday inflation report

According to a Labor Department report, prices continued to rise last month for goods including housing, groceries, airline fares, and vehicles, setting new records in multiple categories.

Energy has soared 34.6% over the past year, the fastest since September 2005, while food jumped 10.1% - the first increase of more than 10% since March 1981, the report highlighted.

Furthermore, fuel oil more than doubled, jumping 106.7%, the largest increase in the history of CPI, which dates to 1935.

Food and fuel prices have accelerated in recent weeks and American drivers are facing daily record gas prices, with the national average hitting $4.99 a gallon on Friday, according to AAA.

  • US
  • US stocks
  • Stock market
  • Federal reserve
  • inflation

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