Global Stocks Fell Into Bear Market On Recession Fears. Oil Prices Were Mixed. The Greenback And Gold Held Firm Prices. Sterling Slumped. Cryptos Changed Hands In Red.

Updated time: 28 Sep, 2022, 12:38 (UTC+04:00)


Wall Street joined the bloodbath as Fed policymakers expected more aggressive rate hikes even if that pushes the economy into recession. Dow Jones gave up 0.47% gains while S&P 500 fell 0.3%, equivalent to its two-year lows on Fed’s hawkish policy tightening. The bearish trend left investors worrying (but not feeling surprised) over ongoing falling stocks. Only Nasdaq climbed slightly 0.25%, thanks to the rally of Tesla and Nvidia.

Global Stocks Fell Into Bear Market On Recession Fears. Oil Prices Were Mixed.

Despite a 20% decline due to recession fears already, the Fed plans to raise rates by 50 bps in December, bringing the year's end rate to between 4.25% and 4.5%. At this time, short-run pain of recession or long-run pain of inflation, which is better?


Oil prices were mixed but still in safe levels, as production hampered by Hurricane Ian was offset by crude storage builds. While U.S. WTI crude futures increased 22 cents to $78.03, Brent crude futures marginally declined 0.1% to $86.23, on per barrel.

Gold prices barely changed. While gold futures declined to $1,653.90 per ounce from their previous closing of $1,628.67, spot gold remained unchanged.


Dollar continued to hold its dominant position near a two-decade high against its peers after yields surged. The dollar index gained 0.18% to 114.35. Sterling slumped 0.4% to $1.0693 as concerns over Britain’s radical tax cuts prompted the government’s significant policy response. The Aussie and euro dropped 0.1% and 0.2% respectively. Yen was stuck despite the previous government’s intervention.


Major cryptos backed in red. Bitcoin was recently trading just over $19,100 down about 1% over the day as investors were still hesitant to risk taking. Meanwhile, Ethereum was quite flat, changing hands at approximately $1,330.

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