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Investors should expect a drop in prices for the months to come

Traders on the New York Stock Exchange

The S&P 500, the world’s leading index, is now in a bear market.

(Photo: AP)

Frankfurt It was just a short hope. Earlier in the week it looked like equity markets would stabilize. But as early as Thursday, investors had to accept price cuts again. After rising interest rates in the US and Switzerland, the leading index slipped into the red by nearly 3%.

A difficult situation is also emerging on Wall Street, although the stock exchanges closed higher on Wednesday despite the Fed meeting. Investors had assessed the results of the meeting: the Federal Reserve raised interest rates by 75 basis points at a range. between 1.5% and 1.75%.

However, according to the official reading, the broad S&P 500 stock index entered a bear market earlier in the week. Earlier in the week it slipped 20% below the record level it had reached earlier in the year. The trigger was speculation that the US Federal Reserve could raise interest rates more than expected at its meeting on Wednesday.

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