January 30, 2023

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Wall Street continues to decline - E24

Wall Street continues to decline – E24

The interest rate decision caused a strong reaction from technology companies on Wall Street. On Friday it continues to decline.

Fear of recession: More and more economists now suspect that the US economy is in favor of a soft landing.
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Since Wall Street closed, the rest of the world’s stock exchanges have submitted red numbers.

Recession fears and rising interest rates are characteristic of the market. Asian stocks fell broadly, with the benchmark Oslo Poor’s down 1 percent.

On Friday, there was a broad decline again, also on Wall Street. At 16.35 it looks like this:

  • The Dow Jones index fell 1.4 percent
  • The S&P 500 fell 1.5 percent
  • Nasdaq is down 1.1 percent

Thursday was a tough day for Wall Street, with all three major indexes down more than 2%.

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The decline continues on Wall Street: – Reality check

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Worst of all, it has bypassed the tech industry. The Nasdaq, which contains many of the world’s largest technology companies such as Apple, Meta and Netflix, fell more than three percent.

The US central bank raised interest rates again on Wednesday. After four alleged triple increases of 0.75 percentage points, the Fed raised the interest rate by 0.50.

On Wednesday, Wall Street reacted hesitantly to raising interest rates, but on Thursday the impact of the interest rate rippled through the stock market.

Global stock markets and Wall Street rose cautiously recently after inflation figures for November showed that interest rate hikes had begun to slow inflation. On the other hand, Danske Bank chief economist Frank Gollum said Thursday’s decline was the result of investors getting too caught up, too soon.

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Central banks gave the market a reality check. They believe in a soft landing, but central banks are now using very clear language, Glum said Thursday evening.

Billions in losses for Netflix

Among the tech companies, it was giant Netflix that suffered the most on Thursday.

For now: Netflix is ​​falling steeper than the rest of the stock market.

In addition to the demanding macroeconomic situation, Netflix had to pay off advertisers’ revenue because it didn’t generate enough impressions.

Netflix shares fell to $288. The total value of the company on the stock exchange decreased from $141.4 billion to $128.5 billion.

In other words, Netflix dropped $13 billion in a few hours, or NOK 129 billion.

On Friday, the stock rose somewhat, trading for $292 just after the open.