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Published Every Monday Since 2007   | Volume 826 |September 26, 2022

So far YTD these many weeks were markets were up (Bull picture shown), down (Bear picture), or draw (Bull/Bear picture) …
Bulls (Markets UP) = 16…
Bears (DOWN) = 22… and
Draw = 0

 


Markets slide continues – The DOW lost 1132 points for the week

  • SP&500 closed down -157 points or -4.1%, the DOW down -1132 points or -3.7%, and the NASDAQ -471 or -4.2% for the week ending September 22nd.  Oil dropped -$5.97 or -7.0% to $79.43 per barrel on the news that aggressive interest rate hike may slow down the US economy to a recession, thus reducing the oil demand. 
  • The aggressive interest rate hike of 0.75% by the Federal Reserve spooked many investors that the recession appears to be inevitable, thus fled from the stocks to safer cash or bond position.  The stocks tumbled close to 4% across the board!

As most predicted, the Feds raised key interest rates by 0.75% the 3rd time in a row and 5th this year to address stubborn inflation

The Fed Chair of the Federal Reserve, Mr. Jerome Powell, for the third time in a row raised the interest rate by 0.75% to address the rising interest rate.  In August inflation rose 8.3% annually which was lower than July 8.5% but this was considered to be an issue that the Federal Reserve Bank  is determined to address aggressively to tamper the economy and the rising inflation. 

Source-WashingtonPost

What is a federal funds rate?

What is interest and APR?

Fed Funds Rate (overnight lending between banks from reserves)


Fed Funds rate range is at 3.00-3.25%

.

Discount Rate (Feds charge member banks to borrow for reserves)

Discount rate is 3.25%

 



  • 2022 the DOW is -18.6%, S&P500 is -22.5% and the NASDAQ is -30.5%
  • 2021 the DOW was up +18.7%, S&P500 +26.9% and the NASDAQ +21.4%
  • In 2020 the DOW was up +7.2%, S&P500  UP+16.3% and the NASDAQ UP +43.6%
  • In 2019 the DOW was up +22.3%, S&P500 up +28.9% and the NASDAQ up +35.2%
  • In 2018 the DOW was down -6.7%,  S&P500 down -7.0% and NASDAQ down -4.6%.
  • In 2017 the DOW was up 25.1%, S&P500 up 19.4% and the NASDAQ up 28.2%

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