The Dow Jones drops 1,000 points as Market anticipates Fed Inflation-Fighting Measures
The Dow Jones Industrial Average dropped more than 1,000 points Monday as financial markets buckled in anticipation of inflation-fighting measures from the Federal Reserve and the possibility of conflict between Russia and Ukraine.
The S&P 500 fell 3.7%, Eastern is now down about 11.1%, the Dow fell 2.9%, and the Nasdaq fell 4.3%.
Technology stocks again led the broader decline in the market with Apple falling 3.3% and Microsoft dropping by 4.8%.
Cryptocurrencies are also experiencing a decline. At midday, Bitcoin was down 2.6%.
The market is waiting to hear from the Federal Reserve policymakers how they plan on tackling inflation although some economists have expressed concern that the Fed is acting too late to combat the high inflation.
Investors are also keeping an eye on developments in Ukraine. Tensions escalated Monday between Russia and the West over concerns that Moscow is planning to invade Ukraine, with NATO outlining potential troop and ship deployments.
Europe’s STOXX 600 index closed down 3.6% on concerns about Fed tightening and worries about the situation around Ukraine. The Russian ruble has also fallen after U.S. President Joe Biden indicated that in the event of a Russian invasion the U.S. could block Russian banks from access to dollars or impose other sanctions.