As of the close, the Dow Jones Industrial Average fell 1.61%, hitting a new low this year, closing below 30,000 points for the first time since June 17.

Picture source: Photo Network_500602844

US stocks collectively " dive "

Tesla evaporated 300 billion

As of the close, the Dow Jones Industrial Average fell 486.27 points, a drop of 1.62%, to 29590.41 points; the Nasdaq fell 198.88 points, a drop of 1.80%, to 10867.93 points; the S&P 500 index fell 64.75 points, a drop of 1.72%, to 3693.24 points.

All 11 sectors of the S&P 500 were wiped out. The energy sector closed down 6.75% amid concerns about global recession, the optional consumer sector fell about 2.3%, the raw materials sector fell more than 2.0%, the industry, telecommunications , and daily consumer goods sector fell at least more than 1.7%, and the health care sector closed down more than 0.5% with the smallest decline.

Large technology stocks fell generally, Tesla fell 4.59%, closing at US$275.33, with a total market value of US$862.7 billion, evaporating US$41.6 billion (approximately RMB 300 billion); Amazon fell more than 3%, closing at US$113.78, with a total market value of US$1.16 trillion, evaporating US$35.8 billion (approximately RMB 255 billion); Apple fell 1.51%, closing at US$150.43, with a total market value of US$2.42 trillion, evaporating US$37.1 billion (approximately RMB 264.5 billion). In addition, Microsoft and Google both fell more than 1%.

Oil and gas and nonferrous metals sectors have the highest declines, BP fell more than 8%, Chevron , Total, and Century Aluminum fell more than 6%, and Occupything fell more than 5%.

Boeing fell more than 5%, and the company will pay $200 million to settle allegations of misleading investors after two fatal crashes on Boeing 737 MAX aircraft.

Popular Most Chinese stocks listed in the United States fell, while the Nasdaq Golden Dragon Index fell 2%, closing at 6329 points. Pinduoduo and Weibo fell by more than 5%, Futu Holdings and Qudian fell by more than 4%, iQiyi fell by more than 3%, Alibaba , JD , Vipshop , and Tencent Music fell by more than 2%, NetEase and Bilibili fell by more than 1%, and Daily Youxian and Baidu fell slightly.

European stocks also collapsed, crude oil fell below $80

market was worried about entering recession

European time on Friday, major European stock indexes fell across the board. As of the closing, the UK FTSE 100 index closed at 7018.60 points, down 140.92 points from the previous trading day, down 1.97%; French CAC40 index closed at 5783.41 points, down 135.09 points from the previous trading day, down 2.28%; German DAX30 index closed at 12284.19 points, down 247.44 points from the previous trading day, down 1.97%.

According to Securities Times , the euro zone PMI hit a 20-month low, below the boom-bust line for three consecutive months, and the shrinkage of Germany, the largest economy, has intensified . Data released by IHSMarkit shows that the initial value of manufacturing PMI in the euro zone in September fell from August 49.6 to September 48.5, lower than expected 48.8, hitting a 27-month low. The initial value of the service industry PMI fell from August 49.8 to September 48.9, lower than expected 49.1, hitting a new 19-month low. The initial value of comprehensive PMI was 48.2, the same as expected, and lower than the previous value of 48.9, hitting a new 20-month low.

UK's comprehensive PMI fell from 49.6 in August to 48.4 in September, while economists are expected to be 49. The UK service industry PMI in September recorded 49.2, falling below the boom-bust line, the lowest since January 2021. This suggests that the UK economy may have fallen into recession after the depreciation of the pound pushes up inflation and leads to a decline in corporate investment willingness. Meanwhile, market research firm GfK said the UK's consumer confidence index fell 5 percentage points to negative 49 in September, the lowest record since the investigation began in 1974. In terms of crude oil, WTI crude oil futures fell 4.86%, and are now at US$79.43 per barrel. Brent crude oil futures fell 4.21% to $86.65 per barrel.

Gold futures are also falling, at $1,651.7 per ounce, down 1.75%.

Analyst: Investor sentiment reaches

The most pessimistic level since the financial crisis in 2008

According to Cailianshe, there are some rumors in the market that the chairman of the Federal Reserve will speak today to save the situation, but Powell did not mention monetary policy at the "Feder Listening" event, nor did he provide more details on the economic outlook, which disappointed investors and caused the decline of US stocks to further expand.

Powell said that after the damage caused by the epidemic, the US economy may enter a "new normal" and we will continue to deal with the current special economic chaos.

As risk aversion sentiment heats up, Chicago Options Exchange Volatility Index VIX once broke through 30. Data from DataTrek Research shows that throughout the year, the US stock benchmark index will hit short-term lows once the VIX index is above this level. "All central banks are making the same tone: they will work hard to control inflation anyway. The Fed has set the tone very clearly... They will continue to raise rates no matter what kind of pain the economy suffers." Michael Hartnett, an analyst at Bank of America , wrote in a note that investor sentiment "no doubt" reached the most pessimistic level since the 2008 financial crisis, with investors turning to cash and avoiding nearly every other asset class.

Goldman Sachs global stock strategy analyst Dominic Wilson has a more pessimistic view. He predicts that the S&P 500 index will fall to 2900 points in the context of a global recession. "The expected path of interest rates is higher than our previous assumptions, which makes the stock market perform lower than our forecasts."

According to brokerage China, CICC's latest report pointed out that the Federal Reserve's September interest rate meeting maintained the "eagle" tone, in line with expectations. Rate hikes have not slowed down, and the dot chart shows that interest rates will rise further and will remain high for a long time.

CICC said that it is expected that the Federal Reserve's interest rate hike in will bring more pain, and the US economy may enter a recession in early 2023, and the unemployment rate will likely rise. In the medium term, high U.S. government debt has imposed constraints on interest rate hikes, which may ultimately force the Fed to tolerate inflation. Although Powell tried to avoid creating a "recession panic", the market may still price in the direction of recession. This recession is more likely to be a "stagflation-style" recession, which means that the US "stock and bond double kill" may not end, and the US stock market is still a long way from the "market bottom".

Citi analyst Deck Weller said in a report to clients on Friday that the Fed maintains a tough stance on its policy to combat soaring prices will only increase the risk of future recessions.

editing| Duan Lian Yi Qijiang

proofreading| Liu Siqi

Daily Economic News Comprehensive from CCTV News, Cailianshe, Securities Times, Securities China, Public Information, etc.

Daily Economic News