The stock market world has been shaken by the recent decision by the Bank of Japan to raise its key interest rate. After a moment of uncertainty, the markets seem to be back on track. Wall Street, in particular, has suffered a new setback with the VIX index, known as the “fear index”, soaring, reflecting growing nervousness among investors.
Stock market: Volatility sows panic
The New York Stock Exchange, which is said to be on the trail of crypto, has once again become a battleground. While The Dow Jones and Nasdaq were collapsingL'VIX index, a barometer of volatility, was soaring. However, everything had started well, with the Dow Jones and the Nasdaq rising again after the Bank of Japan's reassuring words.
But this optimism was short-lived. Fears related to New rate hikes in Japan have destabilized marketsleading to a massive liquidation of speculative positions on the yen.
This turnaround has caused widespread panic, where even safe values have been affected. “carry trade” on the yenonce a winning strategy, has become a bear trap for unwary investors.
Faced with this instability, the market has plunged into a vicious spiral, where Every attempt at recovery is met with a wave of fear-fueled selling.
Sectors hit by Wall Street debacle
L'domino effect has been felt in many sectors, particularly those related to tourism and technology. Airbnbfor example, saw its stock plummet by 13.38%, a dizzying fall due to forecasts of a slowdown in tourism demand in the United States.
Likewise, Disneydespite increasing turnover, saw its share price collapse under the weight of concerns related to its amusement parks.
Most affected sectors:
- Tourism: Airbnb (-13.38%), Tripadvisor (-16.61%), Expedia;
- Technology: Nvidia (-5.08%), Meta (-1.05%), Tesla (-4.43%).
This grim picture shows how unforgiving the stock market can be, even for industry giants. The current volatility has investors wondering whether there is still time to seek shelter in the face of this storm or whether it is already too late.
L'Bitcoin Crypto Fear & Greed Index in Freefallhit its lowest level in two years, signaling growing panic across financial markets.
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