Thursday, 01 June 2023 07:11 GMT

US Stock Market Experiences Decline with Tech-heavy Nasdaq Falling

(MENAFN) The US stock market saw a decline on Friday, with major indexes in negative territory during mid-day trading. The Dow Jones fell 187 points or 0.58% to 31,918, while the S&P 500 also experienced a decrease of 26 points or 0.67% to 3,922. The tech-heavy Nasdaq was hit hardest, dropping 101 points or 0.86% to 11,686.

The VIX volatility index, also known as the fear index, increased by 6% to 23.98, indicating a rise in market risk. Meanwhile, the 10-year US Treasury yield fell 1.4% to 3.356%, reflecting a decline in investor confidence.

The dollar index rose by 0.65% to 103.20, a trend that has been ongoing for the past several days as investors flock to the currency as a safe haven. The euro, on the other hand, fell by 0.77% to $1.0747 against the greenback.

Precious metals were mixed in their performance, with gold remaining flat at $1,994 per ounce, while silver rose by 0.8% to $23.31. The lackluster performance of gold may be due to investors preferring the safety of the US dollar over the precious metal.

Oil prices also experienced a decrease, with global benchmark Brent crude remaining steady at $74.26 per barrel, while US benchmark West Texas Intermediate crude fell to $68.42, a decrease of more than 2%. The decline in oil prices may be attributed to concerns over a potential global economic slowdown, as well as increased production from major oil-producing countries like Saudi Arabia.

The stock market decline comes amid continued uncertainty over the COVID-19 pandemic, as well as concerns over inflation and potential interest rate hikes by the Federal Reserve. While the stock market has seen significant gains in recent months, Friday's decline highlights the volatility that continues to plague investors. As the market continues to navigate these uncertain times, it remains to be seen how it will perform in the coming weeks and months.


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