US Market Crashes on Chip Stock Sell-Offs, Rate Hike Chances Rise
The US stock market experienced a significant crash on July 13th due to sharp selling pressure in chip stocks. The Nasdaq Composite and Nasdaq 100 indexes fell by 400-600 points, while the Dow Jones Industrial Average (DJIA) and S&P 500 also declined.
The DJIA dropped 138.37 points or 0.3% to close at 52,498.64, with stocks like Boeing, Caterpillar Inc, Honeywell International, Home Depot, Cisco, Nike, Alphabet, and Goldman Sachs falling by 1-3%. The S&P 500 index dipped by 60.05 points or 0.8% to end at 7,515.34.
The sharp surge in crude oil prices contributed to the decline, with US WTI crude reaching near $80 per barrel and Brent crude above $85 per barrel. This elevated level raises the chances of a rate hike in September's policy, as assessed by Trading Economics.