The Rio Tinto Limited (ASX: RIO) share price is plunging today amid wider market falls and fears over interest rate hikes in the United States.
At the time of writing, Rio Tinto shares have fallen by 5.72% and are currently trading at $109.28. For perspective, the S&P/ASX 200 Index (ASX: XJO) index is also down by 4.8% today.
So why is the Rio Tinto share price having such a tough day on the market?
What's happening to the Rio Tinto share price?
Rio Tinto shares are falling, but the mining giant is far from alone. Fortescue Metals Group Limited (ASX: FMG) shares are currently down by almost 9% today, while BHP Group Ltd (ASX: BHP) shares are tumbling just under 6%.
Today's falls follow similar declines on Wall Street overnight Aussie time, which saw US-listed Rio Tinto (NYSE: RIO) shares descend just over 4%.
The ASX 200 is following Wall Street's lead after the S&P 500 Index (SP: .INX) fell into a bear market on Monday. The US Fed Reserve is reportedly considering raising rates by as much as 0.75% in an effort to curb rising inflation.
Commenting on the US market falls, City Index senior market analyst Matthew Simpson said:.
This is de-risking at its finest. Investors are rushing for the same small exit in hope of offloading their plummeting assets for cash.
Tumbling iron ore prices could also be dragging on the Rio Tinto share price today.
According to Trading Economics data, the iron ore price has slipped almost 3% to US$137.50 per tonne. Iron ore prices dropped in global markets on Monday amid fear of further lockdowns in China, mining.com reported. Rio Tinto operates 16 iron ore mines in the Pilbara region of Western Australia.
Share price snapshot
The Rio Tinto share price has descended by around 12% in the past 12 months, but it has lifted almost 10% year to date.
For perspective, the ASX 200 has shed more than 11% so far in 2022.
Rio Tinto has a market capitalisation of around $40.7 billion based on the current share price.
