Wall Street Continues to Slide Amid Inflation, Interest Rate Hikes and More
Headline Roundup May 9th, 2022
Bitcoin fell below $32,000 on Monday, down about 12% from Friday evening. By Monday afternoon, the Dow Jones Industrial Average had fallen 500 points, and the S&P 500 hit a new 52-week low.
The Federal Reserve raised interest rates by twice the usual quarter-point increase on May 4 in an attempt to cool the economy and slow down inflation. President Joe Biden is expected to deliver remarks on inflation on Tuesday ahead of Wednesday’s scheduled CPI inflation report.
Coverage was widespread and prominently displayed in business-focused outlets on Monday. Coverage across the spectrum cited inflation as a concern for investors, with some also citing interest rates, recession fears, and COVID-19 lockdowns in major Chinese manufacturing hubs.
Global markets convulsed Monday, with U.S. stocks dipping 1.5 percent or more as the uncertainty caused by slowing growth, roaring inflation, war in Ukraine and the pandemic continue to spook investors.
The Nasdaq continued to lead the losses as investors moved away from highflying tech stocks, shedding 3.8 percent in afternoon trading. April was the worst month for the index since 2008, with jitters sending investors running for cover.
Bitcoin extended sharp losses Monday, falling below $31,000 after touching a recent high of $40,000 last week.
The price of bitcoin was last down 10.9% at $30,812.07, according to Coin Metrics. Earlier in the day, it fell as low as $30,675.44, its weakest point since last July when Bitcoin traded as low as $29,839.80 – the last time bitcoin traded below $30,000. It’s about 53% from its all-time high, which it hit in November. Ether fell 10.8% to $2,278.43.
Cryptocurrencies have been steadily extending their declines since Thursday, when they fell sharply amid a broader...
The Dow fell by more than 400 points after the opening bell on Monday, extending Wall Street’s losing streak as investors took stock of rising yields on government bonds as well as economic slowdowns in China caused by the ongoing pandemic.
The Dow Jones Industrial Average was down 420 points, or 1.28%, while S&P 500 was trading lower by 1.64%. The Nasdaq fell 2% after trading opened on Monday.