October 6, 2022

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Wall Street

Sharp decline in US stock markets – NRK Urix – Foreign news and documentaries

The past week has been turbulent for US companies, with significant volatility in the market.

The drama continued on Monday morning.

Of the three major stock indices, the tech-heavy Nasdaq Index posted the largest decline of 1.8 percent. The Dow Jones fell 1.4 percent, and the Standard & Poor’s fell 1.6 percent.

The Nasdaq closed 5 percent when Wall Street closed on Thursday last week, posting its biggest drop in two years.

Tonight there is a rather steep drop, between 3-4 percent. There was also a drop last weekend, after the central bank raised interest rates on Wednesday, says Harald Magnus Andresen, chief economist at Sparebank 1 Markets.

According to Andreessen, US stock markets could drop another 20 percent. He explains that high interest rates, along with poor growth prospects, are a driver of what is happening now.

Harald Magnus Andreassen explains that there is a sharp decline in the US markets.

Photo: Lise Åserud / NTB

The stock market crash came the day after the sharp rise in US politics in more than 20 years, according to the NTB.

Higher prices are putting pressure on more tech giants.

Meta, owner of Facebook, started the week down about 1.5 percent, reports E24. The same applies to Amazon and Alphabet, a Google subsidiary.

Tesla also ended up in the red, dropping more than 4 percent.

stagnation in the economy

Andreessen explains that the decline is due to the end of the boom period. Unemployment in rich countries has been low, there is a labor shortage and wage growth has increased.

The interest rates we got were the lowest rates in history, says Andreessen, because central banks were helping us during the pandemic.

Tesla

Tesla opened with red numbers on Monday.

Photo: David Zalubowski/AP

Interest rates can go up, and that can happen quickly.

Then it becomes clear to many people that the good times we had did not last, he says.

Then there could be a downturn in the economy, which Andreessen explains usually happens every five years.

Now we see one bubble which goes towards the end. They tend to lower stock prices in Norway by about 40, 50 or 60 percent. Andreessen explains that this is normal.

The economy could slow down, and it would be hard to resist.

– FifthI know stocks can go down a lot, but if the world goes on, and nothing terribly serious happens, there’s usually a sharp rally after that, says the economist.

Low oil prices

Global oil prices fell sharply throughout the day, with its value down 5 percent.

The reason may be lower demand as a result of the renewed coronavirus lockdown in China, as well as rising inflation, according to AFP.

Oil prices are falling

Oil prices are falling. US West Texas Intermediate saw a drop of more than 5 percent on Monday.

Photo: Mario Tama/AFP

The news agency reported that Brent crude (North Sea oil) fell by about 5 percent at the close of trading, to about $ 107 a barrel.

The US West Texas Intermediate index fell 5.4 percent to close at about $104 a barrel.

Downturn in the Oslo Stock Exchange

Stock exchanges in Europe and Asia could also notice a drop on Monday, when the largest stock markets fell.

The FTSE 100 index in London fell 1.5 per cent. In Germany, the DAX is down 1.3 percent, while France’s CAC 40 is down 1.6 percent in afternoon trade, NTB writes.

Japan’s Nikkei stock market index fell more than 2.5 percent.

Oslo Stock Exchange

The Oslo Stock Exchange starts the week with a downturn, and the turmoil continues.

Photo: Eric Johansen/NTB

The Oslo Stock Exchange was also affected by a sharp decline this morning.

The stock market opened in the red and the decline continued throughout the day. The main index fell 3 percent, ending at 1177.41 points.

Equinor helped drag the stock market lower, ending a 4.4 percent drop. Norsk Hydro and Rick Silicon were also among the companies with the highest turnover on Monday. They closed down 3.5% and 0.8%, respectively, according to NTB.

Is the Oslo Stock Exchange safe?

– Things are in Norway’s favor now. The decline in the Oslo Stock Exchange was much less than the decline in the stock exchanges abroad. This is not normal. Andersen explains that this is because oil and gas prices are too high.

He explains that in an economy that is weakening, it is not certain that gas prices will remain at the same level as they are today.

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