The US stock exchanges have started the new week with the heaviest losses in years. The Dow Jones lost more than 1,000 points on Monday and slid back below the 25,000 mark.
Like the S & P 500, the Dow Jones index posted the largest daily loss since August 2011 on Monday. At times, the Dow was ten percent below its record high of January 26, before rebounding somewhat before the close.
In addition to fears of sharply rising interest rates, experts also focused on the development of US government bonds. Automated trade was also made responsible.
The Dow Jones Index fell 4.6 percent - about 1175 points - to 24,346 points. The broader S & P fell by 4.1 percent to 2649 positions. The index of the technology exchange Nasdaq lost 3.8 percent to 6968 meters. The Dow Jones had already lost more than four percent last week. The Dax had previously fallen 0.8 percent to 12,687 points and thus closed as low as last September.
Many stockbrokers believe it is possible that the US Federal Reserve may raise its current 1.25-1.5% interest rate four times this year, rather than three times as previously indicated. Because in the US, the economy is booming, the labor market is running well, and wages rose in January as strong as since mid-2009 no longer. In the night on Monday, the yield on the ten-year paper has risen to its highest level since January 2014.
The investment strategist Jeffrey Kleintop of the money house Charles Schwab stated, however, that he had seen "nothing fundamental", which could have served as a trigger. "It was not triggered by a macro event," he said. "Rather, it seems to have been the computer-driven trade that triggered the imbalance." Larry Milstein, chief trader at broker RW Pressprich, agreed, "It was probably some kind of 'black box', algo sales of government bond stocks and purchases."
Even the Bitcoin crashes
In the individual stocks Wells Fargo was with a price loss of 9.2 percent in the focus. Many analysts downgraded the bank's stock or lowered its price targets after the Fed banned further growth from the scandal-plagued institute on Friday.
The crash at Bitcoin continued. The Bitstamp-traded cryptocurrency lost 12.2 percent to about $ 7,189.
Losses also on the Asian Stock Exchange
The slump on Wall Street has also caused huge losses on the Asian Stock Exchange in Tokyo. The Nikkei index for 225 leading stocks plummeted more than 1,000 points on Tuesday, the highest daily loss since 2016. The index dropped a massive 10,784.84 points or 4.73 percent from 21,610.24 Points from the trade. In the meantime, the Nikkei had lost 7.1 percent.
The broad Topix lost 80.33 points or 4.4 percent to 1743.41 points. This was preceded by with just under 1,600 meters also previously the largest daily loss of the Dow Jones on New York's Wall Street. As a reason for the strong losses are worried many stockbrokers for possibly upcoming interest rate hikes.
