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Fears of a U.S. recession resurfaced as markets dropped sharply due to weak jobless claims and manufacturing data. The Fed kept rates steady but hinted at rate cuts in 2024. This impacted Asian and Indian markets.

Fears of a recession in the U.S surge: Here's why

Fears of a U.S. recession resurfaced as markets dropped sharply due to weak jobless claims and manufacturing data. The Fed kept rates steady but hinted at rate cuts in 2024. This impacted Asian and Indian markets.

Fears of a recession in the U.S have resurfaced. The U.S markets ended sharply lower on Thursday while the Wall street's fear gauge - the VIX - hit its highest level since April.
The impact was felt in the Asian markets as well as the Indian stock markets which were in the red. So what happened? Let's break it down.
Just recently, the U.S Federal Reserve left policy rates unchanged once again, keeping them steady for the 8th time at 5.25% to 5.5%, the highest level in 22 years.
However, Fed Chair Jerome Powell maintained that a rate cut in September is on the table provided the data continues to remain encouraging. Now, markets are anticipating atleast two rate cuts in the calendar year 2024.
Initially, markets reacted positively to this statement.
But it was short-lived because what followed was weak data points that triggered a drop.
Initial jobless claims data showed that claims rose the most since August 2023. Following this, the ISM Manufacturing index, which is an indicator of factory activity in the US, came in at 46.8, which is worse than expected and is a sign of economic contraction. The 10-year treasury yield dropped below 4% for the first time since February.
So, what exactly is the US Fed saying? In this calendar year, there are three policy meetings left, and analysts are expecting two rate cuts. The Fed has acknowledged that inflation has reduced but stressed that the target of below 2% is still far off. Employment remains a concern, with the unemployment rate edging up but still relatively low. Despite inflation easing over the past year, it remains somewhat elevated. Powell noted that there has been progress toward the Committee's 2% inflation objective, but the economic outlook remains uncertain. On the brighter side, GDP data suggests that the US is not yet in a recession. The US Bureau of Economic Affairs reported a 2.8% GDP growth in Q2 2024, up from 1.4% in Q1.&nbsp;
However, rising unemployment, decreasing production, and elevated inflation levels continue to raise concerns.
Economist Chris Rupkey told CNBC that despite possible rate cuts this year, the winds of recession are coming in hard.
Stay updated with the latest business news and insights. Don&rsquo;t forget to like, share, and subscribe to businesshook for daily updates!

The latest three-quarter percentage point increase takes the benchmark lending rate to 3.75-4.0 percent, the highest since January 2008

Fed delivers another steep rate hike with more to come

Another rate hike is here; Fed hikes interest rates 75 basis points

Fed delivers big rate hike

The latest three-quarter percentage point increase takes the benchmark lending rate to 3.75-4.0 percent, the highest since January 2008

In yet another decision, the US Federal Reserve delivered their fourth straight 75 basis-point interest rate with its move to cool red-hot inflation.
The unanimous decision lifts the target for the benchmark federal funds rate to a range of 3.75% to 4%, its highest level since 2008.
The policy-setting Federal Open Market Committee (FOMC) said more increases will be needed to tamp down rising prices but it will consider the impact on the economy when deciding on the pace of future moves -- opening the door to the possibility it will implement smaller steps in coming months.
Powell further said that the committee could begin discussing the possibility of slowing the aggressive pace of rate increases at the December meeting.

Analysts warn that the economy could enter a recession in 2023 on the effects of the Fed's rate hikes, inflation and a global slowdown in growth
 

US Fed set for further steep rate hike as recession fears loom?

Analysts warn that the economy could enter a recession in 2023 on the effects of the Fed's rate hikes, inflation and a global slowdown in growth
&nbsp;

The US Federal Reserve is pegged to make a fourth straight steep hike in the key interest rate this week as it battles surging costs, with its aggressive stance fueling expectations of a recession.
American households have been squeezed by soaring consumer prices, propelling economic issues to the top spot among voter concerns in upcoming midterm elections. Fed officials walk a tightrope to try and rein in prices while avoiding a downturn.
To raise borrowing costs and cool demand, the US central bank has already cranked up the benchmark lending rate five times this year, including three straight 0.75 percentage point raises.
But with persistently high inflation and a tight labor market supporting wages and spending, analysts say another 0.75 point hike is almost certain at central bankers' next policy meeting.
Further Fed hikes are also expected to dampen consumer and business spending, making it more attractive to save rather than spend.
Analysts warn that the economy could enter a recession in 2023 on the effects of the Fed's rate hikes, inflation and a global slowdown in growth.

Global stock markets are feeling the jitters of uncertainty with US markets extending losses in Monday's trade. Here is all you need to know-:

The Dow fell 643 points, or 1.91% while the broader 500 stock gauge S&P500 dropped 2.14%
Worst day of trading since June 16 for the Dow and the S&P 500.
Nasdaq underperformed as tech suffered from higher yields as bets rose on rate cuts. 
All 11 sectors in the S&P 500 were in the red on Monday.
The Dollar meanwhile continued to rally, Dollar index hit the highest level since July 14
Risk-off tone for the markets as investors await the next clue from Fed Chief Powell as he addresses the Jackson Hole symposium on Friday
Powell anticipated to reiterate fight against inflation even as growth comes under pressure.


US markets slide 600 points, worst day since June

Worst day of trading since June 16 for the Dow and the S&P 500.

&nbsp;S&amp;P 500's worst decline in 2 months, while the Nasdaq underperformed as tech suffered from higher yields.

<a href="https://www.editorji.com/business-news/markets-on-the-move-sensex-reclaims-60-000-1660728037141">Global stock markets </a>are feeling the jitters of uncertainty with US markets extending losses in Monday's trade.
<h3>Here is all you need to know-:</h3>
&bull;&nbsp; The Dow fell 643 points, or 1.91% while the broader 500 stock gauge S&amp;P500 dropped 2.14%
&bull;&nbsp; Worst day of trading since June 16 for the Dow and the S&amp;P 500.
&bull;&nbsp; Nasdaq underperformed as tech suffered from higher yields as bets on <a href="https://www.editorji.com/business-news/markets/rbi-repo-rate-hike-top-10-points-that-you-should-know-1659688935035">rate hikes</a> rise.&nbsp;&nbsp;
&bull;&nbsp; All 11 sectors in the S&amp;P 500 were in the red on Monday.
&bull;&nbsp; The <a href="https://www.editorji.com/business-news/markets/explained-rupee-at-80-what-got-it-here-and-what-it-means-for-you-1657998325777">Dollar</a> meanwhile continued to rally, Dollar index hit the highest level since July 14
&bull;&nbsp; Risk-off tone for the markets evident as investors await the next clue from Fed Chief Powell as he addresses the Jackson Hole symposium on Friday
&bull;&nbsp; Powell anticipated to reiterate fight against inflation even as growth comes under pressure.
<a href="https://www.editorji.com/business-news/markets/nifty-sensex-slide-as-volatility-soars-1661153320562">Nifty, Sensex slide as volatility soars</a> &nbsp;

US markets see sharp cuts as the bear market rally loses its steam. The blue-chip Dow Jones Industrial Average fell 1.56%, the S&amp;P 500 dropped 2.01% and the Nasdaq Composite was the laggard, down 3%. Weak economic data made the market reverse all early gains as bets rise on aggressive hikes from the Fed. The consumer confidence index fell to a reading of 98.7, down from 103.2 in May.Beyond equities; oil pushed past $112 a barrel on supply risks and Bitcoin striggled around $20,000 as sentiment continues to be sour around digital tokens.&nbsp;

Market latest news: US markets see sharp cuts, bear market loses its bounce

US markets see sharp cuts as the bear market rally loses its steam. The blue-chip Dow Jones Industrial Average fell 1.56%, the S&P 500 dropped 2.01% and the Nasdaq Composite was the laggard, down 3%.

US markets see sharp cuts, bear market loses its bounce

<div class="abstract-item-text__d2d4dde8">Markets doubtful if the the global economy can face bigger rate hikes</div>

US markets see sharp cuts as the bear market rally loses its steam. The blue-chip Dow Jones Industrial Average fell 1.56%, the S&amp;P 500 dropped 2.01% and the Nasdaq Composite was the laggard, down 3%. Weak economic data made the market reverse all early gains as bets rise on aggressive hikes from the Fed. The consumer confidence index fell to a reading of 98.7, down from 103.2 in May. Beyond equities; oil pushed past $112 a barrel on supply risks and Bitcoin striggled around $20,000 as sentiment continues to be sour around digital tokens.&nbsp;

The update from the markets is not a good one! The US markets collapsed in overnight trade falling to a year low as risk or recession and rates hit sentiment. The Dow broke below 30,000 for the first time since Jan. 4.&nbsp;The Dow dropped 2.42%, S&amp;P 500 slipped 3.25% and the Nasdaq Composite slid 4.08%&nbsp; and touched its lowest level since September 2020.US markets have suffered steep losses this week. The S&amp;P 500 is down 6%, Nasdaq has fallen 6.1%. US markets are on pace for 11th losing week of the last 12.

Markets live updates: US markets collapse, Dow sinks 700 points to year low


The Dow dropped 2.42%, S&P 500 slipped 3.25% and the Nasdaq Composite slid 4.08%  and touched its lowest level since September 2020.

Buckle up! The bears are taking the street for a wild ride

Fears of recession grip global markets as central bankers vow to fight inflation

The update from the markets is not a good one! The US markets collapsed in overnight trade falling to a year low as risk or recession and rates hit sentiment. The Dow broke below 30,000 for the first time since Jan. 4.&nbsp; The Dow dropped 2.42%, S&amp;P 500 slipped 3.25% and the Nasdaq Composite slid 4.08%&nbsp; and touched its lowest level since September 2020. US markets have suffered steep losses this week. The S&amp;P 500 is down 6%, Nasdaq has fallen 6.1%. US markets are on pace for 11th losing week of the last 12.

Markets extended their sell-off in overnight trade. US markets officially entered bear market territory as the S&amp;P 500 tumbles over 3.6%.,down 22% from its highs.&nbsp;At one point during the trading day, every single stock in the S&amp;P 500 was lower. The tech-heavy&nbsp;Nasdaq Composite tumbled 4.68% to close at 10,809.23, bringing its losses for this sell-off to more than 33%.More brokerages now expect a 75 bps hike from the Federal Reserve that starts it's two day meet on Tuesday.&nbsp;Traders now see about 200 basis points of tightening by the Fed&rsquo;s September decision. For the first time some pockets of Wall Street are even betting on a 100 bps hike from the US central bank.Bloomberg&nbsp;reports that the bond markets&nbsp;are also flashing fears that this aggressive tightening will weigh on economic growth down the line. On Monday, a closely-watched part of the US yield curve&nbsp;inverted&nbsp;on growing concern that more aggressive rate

Market carnage: US markets in a free fall; S&P 500 tumbles nearly 4% to new low for the year

US markets officially entered bear market territory, Tech heavy Nasdaq down 33% for the year so far. 

Market carnage: US markets in a free fall as Fed begins 2-day meet

S&amp;P 500 tumbles nearly 4% to new low for the year

Markets extended their sell-off in overnight trade. US markets officially entered bear market territory as the S&amp;P 500 tumbles over 3.6%.,down 22% from its highs.&nbsp;At one point during the trading day, every single stock in the S&amp;P 500 was lower. The tech-heavy&nbsp;Nasdaq Composite tumbled 4.68% to close at 10,809.23, bringing its losses for this sell-off to more than 33%. More brokerages now expect a 75 bps hike from the Federal Reserve that starts it's two day meet on Tuesday.&nbsp;Traders now see about 200 basis points of tightening by the Fed&rsquo;s September decision. For the first time some pockets of Wall Street are even betting on a 100 bps hike from the US central bank. Bloomberg&nbsp;reports that the bond markets&nbsp;are also flashing fears that this aggressive tightening will weigh on economic growth down the line. On Monday, a closely-watched part of the US yield curve&nbsp;inverted&nbsp;on growing concern that more aggressive rate

The latest headline from US markets is that the bulls are back but will they stay? That is the big question even as the bulls celebrate a much needed win for the week with the US markets breaking the streak of losses.&nbsp;Snapping an 8 week long losing streak, the Dow finished up 6.2%, S&amp;P 500 is 6.5% higher and the Nasdaq is up 6.8% on the week. But these gains have come largely from the rally seen on Thursday and Friday.&nbsp;The S&amp;P 500 rose 2.5% to 4,158.24 Friday, erasing its loss for May. This rebound comes as after the S&amp;P 500 fell to the brink of a bear market, dropping&nbsp; 20% from recent high.&nbsp;All eyes remain on Fed's next action in June and the quantum of hikes that follow.&nbsp;

US Markets: S&P 500, Dow log best week since November 2020

Snapping an 8 week long losing streak, the Dow finished up 6.2%, S&P 500 is 6.5% higher and the Nasdaq is up 6.8% on the week. But these gains have come largely from the rally seen on Thursday and Friday

The S&amp;P 500 rose 2.5% to 4,158.24 Friday, erasing its loss for May.
&nbsp;

The latest headline from US markets is that the bulls are back but will they stay? That is the big question even as the bulls celebrate a much needed win for the week with the US markets breaking the streak of losses.&nbsp; Snapping an 8 week long losing streak, the Dow finished up 6.2%, S&amp;P 500 is 6.5% higher and the Nasdaq is up 6.8% on the week. But these gains have come largely from the rally seen on Thursday and Friday.&nbsp; The S&amp;P 500 rose 2.5% to 4,158.24 Friday, erasing its loss for May. This rebound comes as after the S&amp;P 500 fell to the brink of a bear market, dropping&nbsp; 20% from recent high.&nbsp; All eyes remain on Fed's next action in June and the quantum of hikes that follow.&nbsp;

The bear attack has gripped Wall Street but this is not the end, famed 2008 crash caller Michael Burry issued a dire warning to his Twitter followers. :As I said about 2008, it is like watching a plane crash. It hurts, it is not fun, and I’m not smiling."— Cassandra B.C. (@michaeljburry) May 24, 2022Burry's financial crisis call was immortalized in Michael Lewis’s book “The Big Short”  raised the red flag to retail traders about a year ago that the “mother of all crashes” was coming.
Burry, who as a habit deletes his tweets shot warns investor as S&P 500 has posted seven straight weekly declines, the worst losing streak since 2001. And recent data is making matters worse. New home sales data tumbled over 16% in April while prices soared.US is facing its worst inflation in 40 years along with the rest of the world and central banks are coming out guns blazing with rate hikes to attack it. 

Investor who called 2008 crash says 2022 is a plane crash

Burry's&nbsp;bet against the housing market before the 2008 financial crisis was immortalized in Michael Lewis&rsquo;s book &ldquo;The Big Short"

The bear attack has gripped Wall Street but&nbsp;this is not the end, famed 2008 crash caller Michael Burry&nbsp;issued a dire warning to his Twitter followers. :As I said about 2008, it is like watching a plane crash. It hurts, it is not fun, and I&rsquo;m not smiling."&mdash; Cassandra B.C. (@michaeljburry)&nbsp;May 24, 2022
Burry's&nbsp;financial crisis call&nbsp;was&nbsp;immortalized in Michael Lewis&rsquo;s book &ldquo;The Big Short&rdquo;&nbsp; raised the red flag to retail traders about a year ago that the &ldquo;mother of all crashes&rdquo; was coming.
Burry, who as a habit deletes his tweets shot warns investor as S&amp;P 500 has posted seven straight weekly declines, the worst losing streak since 2001. And recent data is making matters worse. New home sales data tumbled over 16% in April while prices soared.
US is facing its worst inflation in 40 years along with the rest of the world and central banks are coming out guns blazing with rate hikes to attack it.&nbsp;

Stocks closed sharply lower on Wall Street Wednesday as dismal results from Target renewed fears that inflation is battering U.S. companies.
The S&P 500, the benchmark for many index funds, fell 4%. The Dow Jones Industrial Average dropped 1,164 points, or 3.6% and the tech-heavy Nasaq pulled back 4.7%. Treasury yields fell as investors sought safer ground.
Target lost a quarter of its value, dragging other retailers down with it, after saying its profit fell by half in the latest quarter as costs for freight and transportation spiked.
That comes a day after Walmart cited inflation for its own weak results. US Inflation is currently reigning at a 40-year high. 
 

Markets crash: Inflation, rate hike hits tech and retailers big time

Stocks closed sharply lower on Wall Street Wednesday as dismal results from Target renewed fears that inflation is battering U.S. companies.
The S&amp;P 500, the benchmark for many index funds, fell 4%.&nbsp;The Dow Jones Industrial Average dropped 1,164 points, or 3.6% and the tech-heavy Nasaq pulled back 4.7%. Treasury yields fell as investors sought safer ground.
Target lost a quarter of its value, dragging other retailers down with it, after saying its profit fell by half in the latest quarter as costs for freight and transportation spiked.
That comes a day after Walmart cited inflation for its own weak results.
&nbsp;

S&amp;P 500 index saw the biggest daily drop in almost two years

Stocks closed sharply lower on Wall Street Wednesday as dismal results from Target renewed fears that inflation is battering U.S. companies.
The S&amp;P 500, the benchmark for many index funds, fell 4%.&nbsp;The Dow Jones Industrial Average dropped 1,164 points, or 3.6% and the tech-heavy Nasaq pulled back 4.7%. Treasury yields fell as investors sought safer ground.
Also read/watch |&nbsp;<a href="https://www.editorji.com/business-news/latest-stock-market-scam-this-company-was-selling-something-that-does-not-exist-1652942096992" target="_blank">Latest stock market scam: This company was selling something that does not exist</a>
Target lost a quarter of its value, dragging other retailers down with it, after saying its profit fell by half in the latest quarter as costs for freight and transportation spiked.
That comes a day after Walmart cited inflation for its own weak results. US Inflation is currently reigning at a 40-year high.&nbsp;
Also read/watch |&nbsp;<a href="https://www.editorji.com/entertainment-news/bollywood/ed-slaps-money-laundering-charge-on-raj-kundra-1652939723995" target="_blank">ED slaps money laundering charge on Raj Kundra</a>

As technology share prices take a beating, the new market reality is reflect in Apple losing it's spot as the world's most valuable company with oil giant Aramco reclaiming the title. Apple boasted a market value of $3 trillion, about $1 trillion more than Aramco’s at the start of this year. Since then, however, Apple has fallen nearly 20% while Aramco is up 28%. In fact since the Fed hiked rates, the iPhone maker has lost $200 million in marketcap. Tech index Nasdaq 100 has lost 24% in the year so far as the central banks ends ultra-easy money policy. Meanwhile, the S&P 500 Energy sector has soared 40% this year, as oil prices have rallied from $75 to $110 this year. 
 

Tech takedown: Apple is no longer the world’s most valuable company

New rate realities hits tech stocks! Apple loses top spot and is replaced as the world’s most valuable company. Guess who it is now?

Apple passed Saudi Aramco to become the world&rsquo;s most valuable publicly traded company in 2020.
&nbsp;

As technology share prices take a beating, the new market reality is reflect in Apple losing its spot as the world's most valuable company with oil giant Aramco&nbsp;reclaiming the title.&nbsp;
Also read/watch|&nbsp;<a title="Mass layoffs at American companies: Here is who is firing" href="https://www.editorji.com/business-news/mass-layoffs-at-american-companies-here-is-who-is-firing-1652340430753">Mass layoffs at American companies: Here is who is firing</a> Apple boasted a market value of $3 trillion, about $1 trillion more than Aramco&rsquo;s&nbsp;at the start of this year.&nbsp;Since then, however, Apple has fallen nearly 20% while Aramco is up 28%. In fact since the Fed hiked rates, the iPhone maker has lost $200 million in market cap.&nbsp; Tech index Nasdaq&nbsp;100 has lost 24% in the year so far as the central banks end their ultra-easy money policy.&nbsp;Meanwhile, the S&amp;P 500 Energy sector has soared 40% this year, as oil prices have rallied from $75 to $110 this year.&nbsp;
&nbsp;

US markets tumbled to a 13-month low in a widespread selloff.&nbsp;The Dow Jones Industrial Average dropped 1.99%. The S&amp;P 500 fell 3.2% breaching 4,000 mark for first time in over a year, while the Nasdaq Composite lost 4.29%.&nbsp;Apple, the most valuable publicly traded company, has seen its marketcap&nbsp;eroded by&nbsp;over $200 billion since Wednesday, when the Fed raised interest rates.It is no just equities even crypto&nbsp;collapse continues with Bitcin falling over 10% in overnight trade.&nbsp;

Wall Street Collapses: Nasdaq down 4%, S&P500 lowest in a year, Bitcoin falls over 10% in overnight trade

Apple, the most valuable publicly traded company, has seen its marketcap eroded by over $200 billion since Wednesday, when the Fed raised interest rates.

Dow falls more than 600 points, S&amp;P 500 tumbles below 4,000

US markets tumbled to a 13-month low in a widespread selloff.&nbsp;The Dow Jones Industrial Average dropped 1.99%. The S&amp;P 500 fell 3.2% breaching 4,000 mark for first time in over a year, while the Nasdaq Composite lost 4.29%.&nbsp; Apple, the most valuable publicly traded company, has seen its marketcap&nbsp;eroded by&nbsp;over $200 billion since Wednesday, when the Fed raised interest rates. It is no just equities even crypto&nbsp;collapse continues with Bitcin falling over 10% in overnight trade.&nbsp;

US markets suffered their worst single day drop since 2020 as stocks, bonds, crypto all came crashing down wiping over $1.3 trillion worth of investments in a single session. Here is what you need to know-:

Tech-heavy Nasdaq 100 dropped 5.1%, the most since September 2020.
Dow Jones Industrial Average lost 1,063 points, or 3.12%,
Bitcoin -- the largest cryptocurrency -- dropped over 10%, just barely managing to hold onto&nbsp;$36,000.&nbsp;
Risk aversion has swept away the relief rally seen on Wednesday after Fed's rate hike&nbsp;
Tech stocks hit the hardest as they are particularly vulnerable to higher interest rates.


Markets collapse: US markets see worst day since the pandemic 

The declines dragged Nasdaq to its worst day in nearly two years

$1.3 TRILLION wiped out! US markets see a free fall, here are the details

Tech-heavy Nasdaq Composite fell 4.99% to finish at its lowest closing level since November 2020.

US markets suffered their worst single day drop since 2020 as stocks, bonds, crypto all came crashing down wiping over $1.3 trillion worth of investments in a single session. Here is what you need to know-:
<ul>
<li>Tech-heavy Nasdaq 100 dropped 5.1%, the most since September 2020.</li>
<li>Dow Jones Industrial Average lost 1,063 points, or 3.12%,</li>
<li>Bitcoin -- the largest cryptocurrency -- dropped over 10%, just barely managing to hold onto&nbsp;$36,000.&nbsp;</li>
<li>Risk aversion has swept away the relief rally seen on Wednesday after Fed's rate hike&nbsp;</li>
<li>Tech stocks hit the hardest as they are particularly vulnerable to higher interest rates.</li>
</ul>

Two central bankers almost the same action and two very different reactions. Federal Reserve hikes rates by the most in 20 years and Wall Street witnessed a 3% rally vs Dalal Street that was whipsawed down by over 1000 points on the benchmark 30 stock index. So what where is the gap - between action and reaction Editorji explains. US Federal Reserve had braced the market for over a year for a turn in the rate cycle and also through dots and plots adjusted the bulls and bears for imminent rate hike of 50 bps. This in comparison to the shocker of a hike from RBI that came via an emergency meeting making traders wonder if the situation is more dire than they are evaluating as the central bank did not even wait for a month for it's June policy where a 25 bps rate hike was largely anticipated. The other part signal came from commentary while Governor Das portrayed a grim outlook for inflation and prices thus setting the stage for aggressive hikes, Fed chief Powell did the opposite as he dispelled worries of a 75 basis point hike from the Fed and indicated it would just be 50 bps or possibly even 25 bps as he sees inflation already cooling. 

Tale of two reactions: Why the US market rallied despite the big rate hike

Two central bankers almost the same action and two very different reactions. Federal Reserve hikes rates by the most in 20 years and Wall Street witnessed a 3% rally vs Dalal Street that was whipsawed down by over 1000 points on the benchmark 30 stock index. So what where is the gap - between action and reaction Editorji explains. 


Editorji Explains tale of two rate reactions: Dalal Street vs Wall Street

Two central bankers (2 shot of Shaktikanta, Jerome Powell) (can use black and white filter and please use the dot plots from the fed meetings from last year) US Federal Reserve had braced the market for over a year for a turn in the rate cycle and also through dots and plots adjusted the bulls and bears for imminent rate hike of 50 bps.&nbsp; (use push out transition of fed with RBI) - use many question marks with a cut out of a bull&nbsp; This in comparison to the shocker of a hike from RBI&nbsp;that came via an emergency meeting making traders wonder if the situation is more dire than they are evaluation as the central bank did not even wait for a month for it's June policy where a 25 bps rate hike was largely anticipated.&nbsp; (use image of empty podium of Fed - shutter stock has it) The stage was set and the words are what made the difference&nbsp;.The RBI&nbsp;governor raised the red flag "&nbsp;There is the collateral risk that if inflation remains elevated at these levels for too long, it can de-anchor inflation expectations which, in turn, can become self-fulfilling and detrimental to growth and financial stability" The fed chief calmed nerves as he took a 75 bps point hike off the table as he saw inflation cooling&nbsp;: &ldquo;a broad sense that additional 50 bps increases should be on the table at the next couple of meetings&rdquo;

Dow Jones Industrial Average rose 932.27 points, or 2.81%, to close at 34,061.06

Two central bankers almost the same action and two very different reactions. Federal Reserve hikes rates by the most in 20 years and Wall Street witnessed a 3% rally vs Dalal&nbsp;Street that was whipsawed down by over 1000 points on the benchmark 30 stock index. So what where is the gap - between action and reaction Editorji&nbsp;explains.&nbsp;
Also read/watch |&nbsp;<a href="https://www.editorji.com/business-news/rbi-shocks-with-a-rate-hike-40-bps-with-immediate-effect-1651653562235" target="_blank">RBI shocks with repo rate hike, CRR hike</a> US Federal Reserve had braced the market for over a year for a turn in the rate cycle and also through dots and plots adjusted the bulls and bears for imminent rate hike of 50 bps. This in comparison to the shocker of a hike from RBI&nbsp;that came via an emergency meeting making traders wonder if the situation is more dire than they are evaluating as the central bank did not even wait for a month for it's June policy where a 25 bps rate hike was largely anticipated.&nbsp;
Also read/watch |&nbsp;<a href="https://www.editorji.com/business-news/is-there-a-social-army-riding-online-to-defend-ola-1651731458442" target="_blank">Is there a social army riding online to defend Ola?</a> The other part signal came from commentary while Governor Das&nbsp;portrayed a grim outlook for inflation and prices thus setting the stage for aggressive hikes, Fed chief Powell did the opposite as he dispelled worries of a 75 basis point hike from the Fed and indicated it would just be 50 bps or possibly even 25 bps as he sees inflation already cooling.&nbsp;

US markets collapsed in overnight trade with share prices dropping the most since 2020, clocking the biggest decline since the pandemic started. Friday’s loss was the biggest for the Dow since Oct. 28, 2020.The Dow fell 981.36 points, or 2.8%, S&P 500 was 2.8% lower at 4,271.78, for its worst day since March. The Nasdaq Composite declined by 2.6% to 12,839.29. Fed comments spooked the market that bigger rate hikes were coming from the US central bank. Traders are betting on a 94% chance that the Federal Reserve will deliver a 75 basis point rate hike in June, up from 70% on Thursday and 28% a week ago.

US markets latest news: Federal Reserve rate hike worries traders, shares collapse

US markets collapsed in overnight trade with share prices dropping the most since 2020, clocking the biggest decline since the pandemic started. Friday’s loss was the biggest for the Dow since Oct. 28, 2020.

Markets collapse, Wall Street sees worst day since the pandemic

Fed comments spooked the market that bigger rate hikes were coming from the US central bank

US markets collapsed in overnight trade with share prices dropping the most since 2020, clocking the biggest decline since the pandemic started.&nbsp;Friday&rsquo;s loss was the biggest for the Dow since Oct. 28, 2020. The Dow fell 981.36 points, or 2.8%, S&amp;P 500 was 2.8% lower at 4,271.78, for its worst day since March. The Nasdaq Composite declined by 2.6% to 12,839.29.&nbsp; Fed comments spooked the market that bigger rate hikes were coming from the US central bank.&nbsp;Traders are betting on a 94% chance that the Federal Reserve will deliver a 75 basis point rate hike&nbsp;in June, up from 70% on Thursday and 28% a week ago.

US Markets staged a 1000 point recovery, a comeback that market participants have not seen since the financial crisis. Nasdaq Composite had been down more than 4% on the session and closed up. For the Dow, which was down 3.25% at its low, it was the biggest intraday comeback since the wild trading of March 2020.Stocks have fallen for much of this year as the market readies for the Fed to raise interest rates to try to tame inflation, which is at its highest level in nearly four decades. The Fed will hold their 2-day meet starting January 25-26. Despite Monday’s rebound, the S&P 500 is still down 7.5% this month, on pace for its worst monthly performance since the outbreak of the pandemic in March 2020.

US Markets stage 1000-point recovery, but is the pain over?

US markets vaulted back into the green after seeing the worst selloff in two years. Here is the play by play of a 1000 point recovery overnight

US Markets stage 1000-point recovery

<ul>
<li>US Markets see a 1000 point recovery from day low&nbsp;</li>
<li>Tech Index Nasdaq&nbsp;ends in the green after dropping 4%&nbsp;</li>
<li>Dow stages biggest intra-day recovery since March 2020&nbsp;</li>
<li>Fed to hold two day meet on January 25-26&nbsp;</li>
<li>US Markets still negative for the month, down 7.5%</li>
</ul>

The final 10 minutes of trading saw all three major stock indexes close higher &mdash;capping a dramatic day of trading that began with markets in free fall Monday morning

US Markets staged a 1000 point recovery, a comeback that market participants have not seen since the financial crisis.&nbsp;Nasdaq Composite had been down more than 4% on the session and closed up. For the Dow, which was down 3.25% at its low, it was the biggest intraday comeback since the wild trading of March 2020. Also watch:&nbsp;<a title="Market Carnage: Sensex, Nifty see mayhem in Monday's trade" href="https://www.editorji.com/business-news/markets/market-carnage-sensex-nifty-see-mayhem-in-monday-s-trade-1643021271049">Market Carnage: Sensex, Nifty see mayhem in Monday's trade</a> The final 10 minutes of trading saw all three major stock indexes close higher &mdash;capping a dramatic day of trading that began with markets in free fall Monday morning. Stocks have fallen for much of this year as the market readies for the Fed to raise interest rates to try to tame inflation, which is at its highest level in nearly four decades. The Fed will hold their 2-day meet starting January 25-26.&nbsp; Despite Monday&rsquo;s rebound, the S&amp;P 500 is still down 7.5% this month, on pace for its worst monthly performance since the outbreak of the pandemic in March 2020.

taper and rate hike, that's the only buzz among traders as the markets await the Federal Reserve to wrap out the last meeting of the year with a clear roadmap for 2022

Fed Meet Preview: 10 things you need to know - taper talk to rate hike, why today's meet matters

Central bankers seen as the biggest risk to equities in 2022: Bloomberg Survey

Fed Meet Preview

Fed Meet Preview: Central bankers seen as the biggest risk to equities in 2022: Bloomberg&nbsp;Survey

Fed Meet&nbsp;Preview: taper and rate hike, that's the only buzz among traders as the markets await the Federal Reserve to wrap out the last meeting of the year with a clear roadmap&nbsp;for 2022.
<h3>EJ puts together the 10 things you need to watch out for and why -:&nbsp;</h3>
1. US is facing severely high inflation, retail prices are at a 40 year high, prices paid to producers are at a record high.
2. Too much money is the basic problem fuelling inflation, which means Fed may have to 'taper' the money supply.&nbsp;
3. To cushion the hit from the pandemic the Fed had been buying $120 billion of bonds per month since March.&nbsp;
4. The purchasing of bonds (which is how they inject money into the banking system) has started to taper by $15 billion a month
5. So, the 'easy money' from the central bank may completely be shut out by June 2022
6. Given the sudden spikes in inflation, markets are worried that the Fed will pick up the pace and plug the money tap sooner.&nbsp;
7. An early policy shift by central banks eager to tame inflation is the biggest downside risk for equities in 2022, according to an informal survey&nbsp;of fund managers conducted by Bloomberg.&nbsp;
8. The US Central bank has pumped $4.4 trillion ($4,400,000,000,000) into the economy since March 2020.&nbsp;
9. This has led to record low rates boosting stocks especially tech. The tech index Nasdaq&nbsp;has doubled from the lows of March 2020&nbsp;
10. Traders back home in India are afraid of a repeat of the taper tantrum of 2013 where there was a global meltdown leading to the rupee falling 15% between May and August and the RBI&nbsp;being forced to raise rates unexpectedly.&nbsp;
Also read/watch:&nbsp;<a href="https://www.editorji.com/business-news/economy/cpi-inflation-rises-as-vegetable-prices-surge-but-clocks-in-lower-than-estimates-1639398423432" target="_blank">CPI Inflation rises as vegetable prices surge, but clocks in lower than estimates</a>

US markets fell sharply at the start of the week as worries from rising Omicron cases to jitters ahead of a critical rate outlook meeting by the American central bank kept traders on the fence. The 30 stock Dow Jones Industrial Average traded 320 points lower while technology-focused Nasdaq Composite fell nearly 1.4%. The broader 500 stock gauge - S&P 500 retreated 0.9% in Monday's trade. Here are the headlines the global traders are reading -:

Omicron Worry: China reported its first omicron case, Britain confirms first death from variant and Australia's New South Wales sees a 50% jump in cases in 24 hours. New York is requiring masks in all indoor places across the state
Inflation Haunts: US reported highest inflation in 40 years, India's retail inflation clocked in at 3-month high, UK inflation likely to jump most since 2016. 
Fed Meet: The US central bank to begin 2-day meet on December 14. Markets await commentary on 'normalisation' of easy money policy. Traders expect Fed Chief Jerome Powell to signal the end of bond buying by the central bank by mid next year. 

The central banks of US, England and Japan have meetings scheduled for this week. 

Sensex falls 400 points following US markets; Here is what is spooking the markets 

The central banks of US, England and Japan have meetings scheduled for this week. 

Omicron has the markets spooked

The central banks of US, England and Japan have&nbsp;meetings scheduled for this week.&nbsp;

Indian markets followed the US market cues in early trad as worries from rising Omicron cases to jitters ahead of a critical rate outlook meeting by the American central bank kept traders on the fence.&nbsp;The 30 stock&nbsp;Dow Jones Industrial Average traded 320 points lower while technology-focused Nasdaq Composite fell nearly 1.4%. The broader 500 stock gauge - S&amp;P 500 retreated&nbsp;0.9% in Monday's trade. Here are the headlines the global traders are reading -:
<ul>
<li>Omicron Worry:&nbsp;China reported its first omicron case, Britain confirms first death from variant and Australia's New South Wales sees a 50% jump in cases in 24 hours.&nbsp;New York is requiring masks in all indoor places across the state </li>
<li>Inflation Haunts:&nbsp;US reported highest inflation in 40 years,<a href="https://www.editorji.com/business-news/economy/cpi-inflation-rises-as-vegetable-prices-surge-but-clocks-in-lower-than-estimates-1639398423432" target="_blank"> India's retail inflation clocked in at 3-month high,</a> UK inflation likely to jump most since 2016.&nbsp; </li>
<li>Fed Meet:&nbsp;The US central bank to begin 2-day meet on December 14. Markets await commentary on 'normalisation' of easy money policy. Traders expect Fed Chief Jerome Powell to signal the end of bond buying by the central bank by mid next year.&nbsp;</li>
</ul>
The central banks of US, England and Japan have&nbsp;meetings scheduled for this week.&nbsp;
Also read/watch:&nbsp;<a href="https://www.editorji.com/business-news/economy/banking-services-to-be-hit-bank-strike-this-week-1639372084293" target="_blank">Banking services to be hit; Bank Strike this week</a>

Wall Street regulator the Securities and Exchange Commission (SEC) on Thursday announced changes that mandates foreign companies open their books to US scrutiny or be delisted from the US markets. This adds pressure to Chinese firms that have refused inspections despite US law requiring them since 2002.  As per Bloomberg the new rule could lead to more than 200 companies being kicked off US markets. What is the new regulation of disclosures 

Requires companies to disclose whether they are "owned or controlled" by a government
Companies to identify and name any govt members on their board of directors.
The percentage of shares that are owned by a government entity
Whether government entities have a controlling financial interest

According to a report by Bloomberg, Beijing has asked the "Chinese Uber" Didi to withdraw from Wall Street. On Thursday, Alibaba's share price hit its lowest level in more than four years on rumors the Chinese e-commerce giant would exit US indices.

Disclose or delist! US issues strict guidelines targeting Chinese firms listed on Wall Street

US forcing Chinese firms to play ball or delist

New regulation forces firms to 'open up' about ownership of be booted out of the US markes.

Wall Street regulator the&nbsp;Securities and Exchange Commission (SEC) on Thursday announced changes that mandates foreign companies open their books to US scrutiny or be delisted&nbsp;from the US markets. This adds pressure to Chinese firms that have refused&nbsp;inspections despite US law requiring them since 2002.&nbsp; As per Bloomberg&nbsp;the new rule could lead to more than 200 companies being kicked off US markets. The first one of the block is ride sharing app&nbsp;Didi, that announced on its Weibo account&nbsp; that it&nbsp;has begun preparations to delist in the U.S. and will start work on a Hong Kong share sale.&nbsp; What is the new regulation of disclosures&nbsp;
<ul>
<li>Requires companies to disclose whether they are "owned or controlled" by a government</li>
<li>Companies to identify and name any govt members on their board of directors.</li>
<li>The percentage of shares that are owned by a government entity</li>
<li>Whether government entities have a controlling financial interest</li>
</ul>
On Thursday, Alibaba's share price hit its lowest level in more than four years on rumors the Chinese e-commerce giant would exit US indices.

Wall Street had investors on another roller-coaster ride Wednesday, as an early stock market rally reversed course and left indexes with more losses.
Markets turned cautious again, erasing early gain and ending lower as investors try to handicap how much the new coronavirus variant will impact the economy.
The latest roller-coaster ride brought the S&P 500 index up 1.9% in the morning and down 1.2% by the closing bell.
The afternoon reversal is the latest dizzying move in recent days as the omicron variant spreads.
Wall Street was already headed lower in the afternoon when the White House announced that the first confirmed case with the omicron variant had been found in the U.S., in a person who recently returned from South Africa

US Markets jolted by the first confirmed case of Omicron in California

Markets feel a jolt from first Omicron case in US

<ul>
<li>US markets sharply reverse early gains as CDC&nbsp;confirms first case of Omicron in California</li>
<li>S&amp;P 500 index was up 1.9% in the morning and down 1.2% by the closing bell</li>
<li>S&amp;P 500 index posted its worst two-day fall since October 2020</li>
<li>Dow finishes 460 points lower in major reversal triggered by first U.S. omicron case</li>
<li>ravel stocks were the biggest losers following news of the first case on US shores.&nbsp;</li>
</ul>

S&amp;P 500 index posted its worst two-day fall since October 2020

Wall Street had investors on another roller-coaster ride Wednesday, as an early stock market rally reversed course and left indexes with more losses as US confirmed the first case of the new variant on it's shores.
Also read/watch:&nbsp;<a href="https://www.editorji.com/coronavirus/first-confirmed-us-case-of-omicron-coronavirus-variant-detected-in-california-1638411920693" target="_blank">First confirmed US case of Omicron coronavirus variant detected in California</a>
Markets turned cautious again, erasing early gain and ending lower as investors try to handicap how much the new coronavirus variant will impact the economy.
The latest roller-coaster ride brought the S&amp;P 500 index up 1.9% in the morning and down 1.2% by the closing bell.
The afternoon reversal is the latest dizzying move in recent days as the omicron variant spreads. Travel stocks were the biggest losers following news of the first case on U.S. shores.&nbsp;
Wall Street was already headed lower in the afternoon when the White House announced that the first confirmed case with the omicron variant had been found in the U.S., in a person who recently returned from South Africa and was quarantined in California.&nbsp;

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