The New York Stock Exchange fell sharply on the 24th (local time) due to inflation-related figures favored by the Federal Reserve System (Fed). All three major indexes were weak this week, with the Dow down 3% and the S&P 500 down 2.7%, and the Nasdaq down 3.3%.
Tesla also fell 2.6 percent on the same day, falling below 200 dollars.
The week’s main average index also closed with the largest drop in 2023. The S&P 500 fell 2.7%, its worst week since December 9 last year. The Dow closed lower for the fourth consecutive week, down nearly 3.0 percent this week. The Nasdaq fell 3.3 percent, marking the second negative week in three weeks.
The reason why all three major indexes were lowered was that the personal consumption expenditure (PCE) price index, an inflation measure, rose 0.6% in January and 4.7% year-on-year, respectively. Economists expected lower gains of 0.5% and 4.4%, respectively.
The slowdown in inflation fell short of expectations, adding to concerns that the Fed may have to keep interest rates higher for longer to curb inflation.
Bitcoin that continued its upward trend by surpassing $25,000, has been hampered by unstable prices.
According to the U.S. cryptocurrency exchange Coinbase on the 24th (local time), as of 5 p.m. (2 p.m. West), the price per bitcoin was USD 23,103, down 3.18% from 24 hours ago.
At the same time, Ethereum was also traded at $1,604, down 2.50%.
Bitcoin continued to rise this year, jumping to $25,200 on the 16th, breaking the $25,000 mark in six months since August last year.
However, it has since shifted downward, falling nearly 8% and falling below $23,000 during the day, threatening the $23,000 mark.
The fall in cryptocurrency seems to be due to investors’ concerns about the Fed’s tightening as prices have been unstable again recently.
The Consumer Price Index (CPI), released on the 14th, rose 6.4% from the same month last year, down only 0.1% points from December last year.
Retail sales rose 3% in January, the largest increase in about two years since March 2021, sending a message that inflationary pressure remains.
