What engulfed global financial markets on September 23?

What engulfed global financial markets on September 23?

Stocks fell sharply, bond yields climbed and the dollar was stronger on September 23 because of concerns about interest rates and recession.

The wave of sell-off on September 23 took place globally, in a week in which the Fed raised interest rates by 75 basis points and other central banks followed suit to combat global inflation.The Fed also forecasts that the unemployment rate could rise to 4.4% in 2023, from 3.7% now. Fed Chairman Jerome Powell affirmed that the Fed will do what is necessary to quell inflation.

“By endorsing the idea of ​​a recession, Mr. Powell sparked a sell-off in the market,” said Julian Emanuel, head of equities, derivatives and quantitative strategy at Evercore ISI.

“It is likely that investors will continue to receive bad news in the near future when almost every asset is sold off. The good news is that a sell-off in almost every asset is usually the end of almost every bear market we've seen and this will happen in September and October 2022."

Recession fears have also hit the commodity market, with metal and agricultural contracts selling off on a large scale. WTI oil futures fell more than 4% to $78 a barrel, the lowest since early January 2022.

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