Mini crash for Jeff Bezos and Elon Musk who lose billions overnight

The world’s richest lose millions overnight: Jeff Bezos and Elon Musk see their net worth dwindle.

Imagine waking up to find you’ve lost nearly $10 billion overnight. The founder of Amazon, Jeff Bezos, could sympathize, as he lost $9.8 billion on Wednesday at market closeas shown by the Bloomberg Billionaires Index.

Also among the big losers are Elon Musk of Tesla and Mark Zuckerberg of Facebook. Bill Gates and Warren Buffett also lost billions in a single day.

Why this crash?

The collapse of stock prices is due to speculation about a major US Fed rate hike next week. A report on inflation at the wholesale level showed that prices continue to rise rapidly, with pressures building up below the surface.

The Fed is taking aggressive action on interest rates to try to slow inflation the highest in four decades. Tuesday’s high price report shook the market with signs that inflation is entering a more tenacious phase which could force aggressive action from the authority.

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According to analysts, there are one in three chance that the Federal Reserve will raise its benchmark rate by one point full percentage next week, or four times more than usual. The central bank has already raised its benchmark interest rate four times this year, with the last two increases being three quarters of a percentage point.

Shares fall, slight gains

Tech stocks were the hardest hit on Wednesday, Meta skidded 9.4% and chip giant Nvidia lost 9.5%.

Thursday was a slightly better day for stocks, and for these billionaires, as stocks were in generally higher after one day of trading hesitant led to modest gains on Wall Street.

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Global equity markets were mixed on Thursday as the likelihood of a further rise in global borrowing costsincluding a possible increase in 100 basis points in US rates next weekkept the bears on the prowl.

Fitch is now planning a global GDP growth of 2.4% in 2022 – revised downwards by 0.5 percentage points – and only 1.7% in 2023a reduction of one percentage point.

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