US Fed Unleashes Bear Attacks on Stock Markets
Jerome H Powell Photo Credit Twitter Federal Reserve
Global Equity Markets See Bloodbath After Fed Talk
By S Jha
New Delhi, December 19: Hawkish commentary by US Federal Reserve Chairman Jerome Powell sank global equity markets on Thursday. The US bourses first went tumbling down after Powel said that inflation remains a key challenge.
The US Fed lowered benchmark interest rate for a third consecutive time. But it also alarmed equity markets by sounding out that there will be fewer rate cuts in 2025. Experts noted that US Fed is highly cautious in reducing borrowing costs.
Dow Jones went crashing by over 1100 points in an all-round equity market rout in the US. The tech stocks faced the brunt of the bear attacks after the Fed commentary. NASDAQ went tumbling down on the lines of other bourses in the US.
Dow Jones recorded 10-day losing streak following Wednesday rout after the Fed rate cut. Nifty gaped down with losses of over 300 points in the early trade on Thursday. Bank Nifty also went tumbling down with losses of over 800 points in the early trades.
Traders sounded alarm at the crash of the equity markets. Technical chartists are looking at a major correction in the bourses.
“Till remaining below last fall retracement that started from 24792, a big C wave unfolds towards 22929/ 21778. For ST (Short-term) day traders, use 200Ema of five minute or one minute t/f to get the direction right,” posted Van Ilango, a technical chartist, on X.
Except for Dr Reddy’s Laboratory and IT, all Nifty stocks were trading with losses in the first one hour of the trade. LT Info with loss of over four per cent led the pack of IT stocks bearing the brunt of the bear attacks on the bourses. TCS is the sole IT stock which defied the trend while trading with a minor cut.
In the course of three-day, Nifty has lost close to 800 points. The deep correction in the Indian equity bourses has come ahead of the year-end. The long holiday for the foreign institutional investors is also looming ahead of the Christmas celebrations.
Bharti Airtel, tracking bullish trends, recovered losses to turn green after an hour of trade on Thursday. Experts are advising caution, saying that investors should wait for finding better prices for fresh buying. The deep correction in the bourses has come despite robust mutual fund SIP flow in the equity market.
(Disclaimer: This article makes no recommendation for any trade in the stock markets)
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