After the Indian stock market plunged to its lowest level in one year, the US stock market has now also started a record sell-off. The US stock market was seen as creeping out of fear of inflation. The US market index – the S&P 500 – is down 3% in early trading.
All 11 major sectors of Standard & Poor’s declined in morning trading. Companies with huge market capitalization – Amazon.com, Microsoft, Apple and Tesla – have also surrendered. These stocks fell between 2.5% and 6%. Morgan Stanley was the biggest loser among the major US banks, down 4%.
With the opening of the American Stock Exchange, another index – the Dow Jones Industrial Average fell 692.04 points or 2.26% at 29976.49, and the Nasdaq Composite fell 355.94 points or 3.21% at 10743.21 points.
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The Indian market has also been affected: The BSE Sensex index closed at 1,045.60 points, or 1.99 percent, down at 5,1495.79 on Thursday amid weak global sentiment, concerns about inflation and capital outflows by foreign institutional investors. The Sensex lost 3824.49 points, or 6.91 percent, in the past five trading sessions. Due to the continuous decline in the stock markets over the past five days, the investors lost Rs.15.74 thousand crore.