Dow Sinks 750 Points as Stocks Enter Bear Market With Fears Over Big Rate Hikes
It's getting mighty ugly out there as the Dow opened down below $700 Monday morning to start off what could be a brutal week in the markets. BetOnline opened July 13 with it's projected price (Over/Under) set at 31250.5 Points for the end of day June 30, 2022. The points as of Monday 10:30 am ET were 30,644.
What's Causing the Drop in the Dow Monday?
Markets tumbled worldwide out of fears of recession and inflation as well as the strong likelihood of rate hikes.
From the Associated Press:
The center of Wall Street’s focus was again on the Federal Reserve, which is scrambling to get inflation under control. Its main way to do that is to raise interest rates in order to slow the overall economy, a blunt tool that carries the risk of causing a recession if used too aggressively.
“The odds of a ‘June Swoon’ straight to 3,400 have gone up significantly, in our view,” wrote Jonathan Krinsky, technical analyst for BTIG.
“We thought a momentum reversion where winners got bought and losers sold would create chop at the index level, but last week is a reminder that the risk continues to be to the downside,” Krinsky added.
Inflation to Close Last Week
Overall CPI: +8.6% since last year
Gas: +48.7%
Fuel Oil: +106.7%
Meat, Poultry, & Fish: +13.1%
Milk: +15.9%
Eggs: +32.2%
Coffee: +15.3%
Used Cars: +16.1%
Airline Fares: +37.8%
Real Average Hourly Earnings: -3%
Gas Price Betting
BetOnline was in the process of adjusting its gas price futures odds, but did have oil prices posted as of Monday morning.
Oil Price (Barrel) June 30th at Close
Over 120.5 USD
-120
Under 120.5 USD
-120
The national average gas price was up just above $5 to start the week off.
Crypto, Bitcoin Getting Hammered as Well
The price of Bitcoin continued to slide after crypto lender Celsius Network announced it was freezing withdrawals.
The Celsius move triggered a slide across cryptocurrencies, with their value dropping below $1 trillion on Monday for the first time since January 2021, dragged down by a 12% fall in the largest token bitcoin.
After Celsius's announcement, bitcoin touched an 18-month low of $23,300.
Digital currencies have not been immune to rising interest rates and surgin inflation.
Bitcoin has plunged to its lowest level in about 18 months https://t.co/nmZvcj549K pic.twitter.com/QMwBfyeMsB
— Bloomberg (@business) June 13, 2022
The world’s largest cryptocurrency exchange, Binance, instituted a pause on withdrawals of bitcoin Monday morning as well, founder and CEO Changpeng Zao announced on Twitter.
Binance elaborated on the problem later Monday morning, saying that “a batch of bitcoin transactions got stuck” due to low transaction fees, “resulting in a a backlog” of bitcoin network withdrawals, in a series of tweets from the companies Twitter account.
“Our team is working on a solution to resume withdrawals as soon as possible,” it added. “Stay tuned for further updates and timelines.”
Coinbase plunged more than 14% as Bitcoin continued its dive.
- Aaron Goldstein, Gambling911.com
