Investors Should Blame Bank Of Japan For Major Selloff, Economist Says
Portfolio Pulse from Michael Juliano
The recent sharp decline in global markets, including the Dow Jones Industrial Average and the S&P 500, is attributed to the Bank of Japan's unexpected interest rate hike, which led to the unwinding of the yen carry trade. This has caused significant market volatility and poses a dilemma for the Federal Reserve's upcoming rate decisions.
August 06, 2024 | 6:55 pm
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The SPDR Dow Jones Industrial Average ETF Trust (DIA) experienced significant volatility due to the Bank of Japan's interest rate hike, which led to a major selloff in the Dow Jones Industrial Average.
The Bank of Japan's unexpected interest rate hike led to the unwinding of the yen carry trade, causing a significant selloff in the Dow Jones Industrial Average, which DIA tracks. This has resulted in increased volatility for DIA.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80