Only two ASX 200 shares are currently recording gains.
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The S&P 500 Ââ the United States (US) benchmark index â plunged 3.88% on Monday, leaving it 21.8% lower than its early January high.
Its suffering came amid increasing fears the nation could enter a recession. This also likely spells bad news for ASX 200 shares. They were tipped to potentially suffer a “double hit” on Tuesday. Â
Right now, the ASX 200 is down 5%, an even greater dip than that predicted by SPI futures earlier.
Hereâs what market watchers need to know about international marketsâ recent volatility.
ASX 200 shares tumble on a turbulent Tuesday
Wall Street is officially in a bear market amid fears the US Federal Reserve could kick off a recession. Of course, it was always unlikely that ASX 200 shares would dodge the global carnage.
It’s left many believing the Federal Reserve could hike interest rates higher than previously expected, beginning in coming days, reports the Wall Street Journal. By hiking interest rates, whether in one foul swoop or through many smaller boosts, the Fed could spark a recession.
Suffering alongside the S&P 500 overnight were the Nasdaq Composite and the Dow Jones Industrial Average. The major indexes fell 4.68% and 2.79% respectively overnight.
The Australian dollar also slumped 1.21% on Monday to reach 69.33 US cents. Finally, cryptos were hit hard overnight as Bitcoin (CRYPTO: BTC) fell 16.39% to US$22,203.90.
All that is putting pressure on ASX 200 shares on Tuesday. Particularly, as they get back to business after the three-day weekend.
“The Australian holiday yesterday may mean the local market suffers a double hit today,” Tiger Brokers chief strategy officer Michael McCarthy said prior to market open.
The S&P/ASX 200 Information Technology Index (ASX: XJI) is the index’s worst performing sector today, likely on the back of the tech-heavy Nasdaq indexâs stumble. It’s down 8.05% at the time of writing.
The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) is the best performing sector. That’s despite it recording a 3.24% drop.
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