Sensex, Nifty face severe Monday blues as the 30-stock benchmark sank over 1000 points as Fed Chief Powell indicated that aggressive rate hikes will continue from the Federal Reserve.
Powell speaking at Jackson Hole Symposium said that the Fed's continued tightening of credit will cause pain for many households and businesses as its higher rates further slow the economy and potentially lead to job losses. “These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain," he said
Powell's message may disappoint investors who were hoping for a signal that the Fed might soon moderate its rate increases later this year if inflation were to show further signs of easing.
Alongside equities, currencies also took a sharp cut. The rupee breached the 80-to-a-dollar mark to hit a fresh record low tracking fall in global equities on the back of the Federal Reserve’s hawkish rhetoric at Jackson Hole.
But it is not just India that is feeling the pain, The S&P 500 tumbled 3.4%, its worst day since mid-June. Powell's speech sparked a market rout that slashed the fortunes of US billionaires' by $78 billion, as per Bloomberg.
Read More:- Markets crack: Sensex sinks 1000 points, Nifty below 16000