After a relatively calm beginning to the week, marked by achievable gains, the conclusion of this trading week has seen turmoil sweep through equity markets across the globe. It has been a tumultuous period for traders, whether on Wall Street or Dalal Street.
While the language may seem alarmist, fluctuations are inherent in this domain, but the context here holds significant weight. Besides ongoing speculations about a global economic downturn, concerns regarding inflation, interest rates, and potential adjustments to these figures have cast a shadow over the markets.
Moreover, disruptions to the global supply chain, whether due to the conflict in Ukraine, unrest in African nations, or tensions in Gaza and their ramifications on trade routes, have kept investors on edge.
As if these developments weren’t enough, the perennial player in this narrative, crude oil prices, have also surged significantly. Brent crude has surpassed the USD 90 mark per barrel after a prolonged period, further exacerbating concerns.
Thursday witnessed a significant shake-up in the esteemed American indices, with the Nasdaq, Dow Jones, and S&P 500 collectively plummeting by over 1.32 per cent in a single day’s trading session, according to Free Press Journal.
The S&P 500 saw a decline of 64.28 points or 1.23 per cent, closing at 5,147.21. The Dow Jones Industrial Average concluded at 38,586.98, shedding 530.16 points or 1.35 per cent.
Additionally, the technologically advanced Nasdaq, driven by AI, also experienced a downturn, dropping by 228.38 points or 1.40 per cent to reach 16,049.08.
Friday morning witnessed Asian indices continuing from where they left off, echoing the aforementioned downward trend. The Hang Seng recorded a 1.26 per cent drop to settle at 16,513.86 points. South Korea’s KOSPI also experienced a decline, slipping by 1.09 per cent to reach 2,712.20. Even the Nikkei was not spared from the wave of losses on Friday morning.
The Japanese index, which had been making steady progress following the historic interest rate hike by the Bank of Japan, experienced a setback after surpassing the 40,000 mark for only the second time in its history. The Nikkei 225 plummeted by a substantial 2.42 per cent on Friday morning.
Indian indices were not immune to the trend, with the Sensex, Nifty, and Nifty Bank all starting the final day of the week in the red after a relatively positive close to Thursday’s trading.
It remains to be seen whether Asian indices will maintain their trajectory throughout the day and if American indices will stage any significant recovery later on.
Currently, the Sensex is trading at 74,153.55, down by 0.1 per cent (11:30 IST). Meanwhile, the Nifty is also trading lower at 22,487.85, a decrease of 0.12 per cent (11:30 IST).
(Finance World and The Free Press Journal have published the article under a mutual content partnership arrangement.)
