The decline of “Dow Jones” and “Standard & Poor’s” .. and the stability of “Nasdaq”

The Dow Jones Industrial Average fell on Monday as rising interest rates and turmoil rocked the global currency market. The industrial index fell 256 points, or 0.9%, while the Standard & Poor’s index fell by 0.7%, while the Nasdaq index settled.

The British pound fell to a record low, Monday, against the US dollar, falling to an all-time low of $1.0382.

The Federal Reserve’s aggressive campaign to raise interest rates, along with the UK tax cuts announced last week, caused the US dollar to rise. The euro has reached its lowest level against the dollar since 2002. An appreciation of the US currency could hurt the profits of US multinationals, as well as damage global trade, much of which is handled in dollars.

“Historically this dollar strength has led to some kind of financial/economic crisis,” Michael Wilson, chief US equity strategist at Morgan Stanley, wrote in a note. If ever there was a time to look for something to break, this would be it.” The Standard & Poor’s index briefly fell below its June closing low of 3666.77 during trading. At some point during the day, the index fell to 3,644.76 points, less than eight points from its lowest intraday level for 2022.

Bond yields jumped on Monday, with the 10-year Treasury yield rising to 3.9% at one point on the day. This is the highest level since 2010.

Yields on two-year Treasuries, which are particularly sensitive to Fed policy, also jumped. The rate on the note exceeded 4.3%, the highest level since 2007.

Stocks are kicking off a tough week as the Dow Super Index found a new intraday low for the year and closed down 486 points. The broad-based Standard & Poor’s index temporarily broke its lowest close in June and closed down 1.7%. The Nasdaq lost 1.8%.