US Stocks extended their downturn after closing the last week in the red. The S&P lost 2.1%, the Dow industrials fell 1.9%, and Nasdaq pulled back 1.9%. This was the index's worst performance since June. Investors got worried about sharp rate increases, before Fed Chairman Powell's speech in Jackson Hall. Bed Bath and Beyond extended its retreat, Netflix lost 6%. Cryptocurrencies, which seem to be more or less correlated to other risky assets also lost, Bitcoin fell to 21,148.
This selloff led to more people buying the dollar, causing the dollar to soar to its highest value in the last 20 years. The EUR/USD rate hit 1 once more and is now at 0.99
Unlike US Stocks, the BIST100 extended its rally by closing 1.4% higher, possibly as a result of the rate cuts encouraging investors to buy risky assets. However, these rate cuts have possible adverse results, including forecasted 87% inflation and 22 USD/TRY ratio, which will create pass-through inflation as well.
Stoxx 600 lost 1% and most Asian indexes lost too, except the Shanghai Composite. (A result of the rate slashes similar to Turkey.)
Data Source: Yahoo Finance
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