NEW YORK: The U.S. stock market dove down today with the Dow Jones Industrial Average falling by 4.6 percent with a nearly 1,600-point drop and Wall Street erased its gains for the year. – this being the lowest one day fall since 2011. Standard & Poor’s 500 index also slumped by 4.1 percent by the end of trading in New York.
Today’s downturn comes after there was a major sell-off of energy and industrial stocks on Friday. They were prompted to do so as analysts say inflation rates around the world will increase by 2 to 3 percent this year, according to The Guardian. The U.S. fall has already affected other international markets.
Brasil’s stock exchange, the IBOVESPA fell by 2.59 percent and the Real fell by just over one percent. Mexico’s exchange ended 4.16 percent lower and the Buenos Aires stock exchange fell by 4.5 percent in reaction to the New York market.
The Australian stock market opened 2.7 percent lower and the Japanese market closed at its lowest since 2016. Analysts are saying the U.S. stock sell-offs are expected to increase.
Steve Wachtel from SSI Investment Management ventures to Reuters that the high sell-off was possibly due to the high indices of machines trading and algorithms that prompted selling.