Black Wednesday on Wall Street due to inflation; Nasdaq suffers the “bear”

The mid-week session was full of bad news for the New York stock markets, due to the great fears of the market for an imminent stagflation in the United States, since not only is the highest inflation in the last 40 years hitting, but there are recession forecast.

The bags.

industry index Dow Jones, the most important on Wall Street, fell 3.6%, the worst slump since June 2020 when the outbreak of the pandemic hit the economy. Walmart presented poor results derived from inflation, which contributed to the drag of other companies.

The S&P 500, a reference indicator for multiple investment funds, plummeted 4%, something not seen since June 2020 either. Here Target lost 24.9% (not seen since 1987), a quarter of its value, setting off a cannonade among retailers that dragged down the market. It is about to fall into the ‘bear market’.

The Nasdaq, stock market indicator of the largest technology companies, plummeted 4.73%. He fell in ‘bear market‘ (market bear), which occurs when an indicator has a cumulative decline of 20% or more since its last high price. The Mexican economist Gaby Siller from Grupo Base explained this fact via Twitter.

The red numbers occur in response to data on the poor performance of retail chains such as Target y Walmartshows the impact that the current intense inflation is leaving on the United States, coupled with the new announcement that the Federal Reserve (Fed) could increase the interest rate even more, amid fears of suffering an economic recession in 2022.

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