On Tuesday, all four benchmark US stock indices witnessed a drop as the housing data indicated that residential sales dropped by 0.7% last month. The tension between the United States and Russia escalated as the latter’s President, Vladimir Putin, suspended the New START nuclear treaty, while the US chief equity strategist at Morgan Stanley warned of a stock market “death zone” and predicted a drop of 26%.
Investors Growing Anxious Over Possibility of US Recession
Markets were trading lower on Tuesday, with investors further rattled by the current macroeconomic climate. The National Association of Realtors (NAR) published a report on Tuesday which showed that the US housing market is deteriorating with home sales declining by 0.7% in January. The price of gold and silver was also affected, dropping 1.37% to $1.11 trillion over the last 24 hours. US stock markets followed a similar trend, with the Dow Jones Industrial Average (DJI), S&P 500 (GSPC) and Nasdaq (IXIC) all suffering drops of 1.9% – 2.79%.
The NAR report highlights the growing concerns among investors in the US regarding elevated inflation levels. Despite the fear that the Federal Reserve’s rate hikes may lead to economic collapse in the nation, the number of people buying home witnessed a significant surge. These Tuesday tensions escalated further as people started to speculate on the possibility of a third World War, sparked by the US-Russia conflict. Putin accused the West of trying to establish “a despicable policy of deception”
