Today at 10 am Eastern Time, Chairman of the Fed Jerome Powell delivered a speech in Jackson Hole, Wyoming. For the last week, many investors had their eyes on this speech. In the shortest Jackson Hole address in at least 10 years, Powell strongly stated they are willing to do whatever it takes to ensure price stability. This means the rate hikes will continue for some time. This speech announcing further tightening of economic policy ended the false optimism that caused the market to rally for the last month. Today, the DOW lost 3%, the S&P lost 3.4%, and Nasdaq led the selloff with -3.9%. Policy tightening and recession fears tend to hit tech stocks more, because they usually have higher P/E ratios, due to growth potential.
The BIST rose only 0.3% today, after reaching a new record yesterday. The index doesn't seem affected by the global markets, and some money managers are betting further policy loosening bank stocks have led the index for quite a while.
Commodity prices rose, as one could've guessed, with the fear of a recession.
Source: Reuters
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