Search

U.S. Stock Indexes Plummeted Tuesday After Fed Indicates Faster Tapering, European Stocks Down


London, Tuesday, 30 November 2021


U.S. stock indexes plummeted Tuesday after Fed indicates faster tapering, European stocks down as inflation at 25-year high.


During his testimony before the Senate Banking Committee, the Fed Chair, Jerome Powell said, "The economy is very strong and inflationary pressures are high. It is therefore appropriate in my view to consider wrapping up the taper of our asset purchases perhaps a few months sooner,"


Powell said, the possibility of a quicker tapering will be discussed among the members of the Federal Open Market Committee (FOMC), during their next meeting, 14-15 December.


Following its meeting on 3 November, the FOMC announced that the $120 billion asset purchase winding down, will start in November and expected to end by mid-2022.


In Europe, the Euro area recorded its highest inflation rate since 1997, at 4.9%, according to Eurostat.


Investors’ concerns were focused on the new, omicron coronavirus variant, which may trigger further lockdowns and quarantine measures, closing business and slowing the global economic recovery, as a result.


U.S.


S&P 500: -88.27 (-1.90%) to 4,567.00

Nasdaq: -245.14 (-1.55%) to 15,537.69

Dow Jones: -652.61 (-1.86%) to 34,483.33


Europe


STOXX Europe 600: -4.28, or 0.92%, to close at 462.96

FTSE 100 in London: -50 points, or 0.71%, to end the day at 7,059

DAX 30 in Germany: -180 points, or 1.18%, to finish at 15,100

CAC 40 in France: -55 points, or 0.81%, to 6,721

FTSE MIB 30 in Italy: -227 points, or 0.87%, to end the day at 25,814

IBEX 35 in Spain: worst performer of the day, -150 points, or 1.78%, to close at 8,305


Other markets


Ten-year U.S. Treasury notes: -8.7 bps to yield 1.4430%

Dollar index: -0.44 -0.46% 95.90

VIX volatility index: +4.23 (18.42%) at 27.19

Brent crude: -3.22 (-4.38%)70.22

West Texas Intermediate: -3.15-4.50% 66.89

Gold: -$11.00 (-0.62%) to $1,774.20 per ounce

Silver: -0.032 (-0.14%) at 22.820 as of 04:33PM EST.

Bitcoin: -1,256.03 (-2.16%) at 56,978.93 as of 09:43PM UTC




(Written and edited by: The Decision Maker)