Skip to content
- On Monday, US stocks fell as a selloff in technology equities resumed in response to the fear of persistently rising inflation.
- The S&P 500 dropped 1.3%, falling below its 100-day moving average, while the Nasdaq 100 dropped 2.2% and the Dow Jones Industrial Average dropped 0.9%.
- High-growth technology businesses, such as Amazon and Facebook led the losses, while vaccine producers also suffered as a result of Merck's revelation regarding a successful COVID-19 medication. Nonetheless, energy stocks surged in tandem with oil prices.
- Global markets have taken a risk-off stance as a result of a rising number of concerns, just as investors prepare for the Federal Reserve to start withdrawing stimulus as soon as next month. Higher inflation and government rates reduce the value of the premium paid for high-growth equities. For other tech companies, the danger of losing money is also larger.
- Fears of a broader energy crisis compounded concerns about inflation on Monday, as European electricity and gas prices soared ahead of the winter solstice. In Germany, the electricity contract for November set a new high, while natural-gas futures continued to rise. Nevertheless, crude oil prices in New York rose to their highest level since 2014 when OPEC+ decided to increase output in November.
- Biden warned on Monday that the US government was on the verge of exceeding its legal debt limit, portraying the threat as a "meteor" heading straight for the economy.