Worst day on Wall Street in two years

Yesterday's collapse on Wall Street might have been impressive. The indices fell at a pace we had not seen since 2020.

Technology companies lost the most: the Dow Jones Industrial Average fell by more than 1000 points. Nasdaq Composite fell by nearly 5 percent, and S & P 500 by 3,56% Among individual companies, the biggest losses were also suffered by companies from the technology industry: Tesla - 8,3 percent, Apple - 5,6 percent, Amazon - 7,6 percent, AMD - 5,6 percent. and Microsoft - 4,4 percent.

Inflation and the so-called property effect

Thursday's downturn session on Wall Street nullified the strong gains we saw on Wednesday after the Federal Reserve meeting. What could have caused a retreat? It seems that investors may have become convinced that the Federal Reserve will be determined to fight inflation, and that it has the so-called property effect.

Stock market stockholders may be limiting their consumption expenses as their stock market savings dwindle. Falling demand may have a deflationary effect on the economy, which seems to be an additional mechanism of fighting inflation.

Not only the stock exchanges lost but the dollar won as usual

Yesterday also bond prices and cryptocurrency. The yield on 10-year US bonds broke the level of 3% and bitcoin quotes at some point fell below 36 thousand. USD.

Capital could turn back to the US currency. The USD index approached the level of 104 points, the highest since 2002, which may indicate the continuing nervousness on the financial markets.