The NY stock market closed yesterday in the red and the dowjones, its main indicator fell 1.72% after the president of the Federal Reserve (Fed), Jerome Powell, anticipated an acceleration in interest rate hikes.
At the close of business, the Dow Jones cut 575 points, up to 32,857 unitsyes, and the S&P 500 fell 1.53% to 3,986 points. The Nasdaq index, which brings together technology companies, it fell 1.25%, to 11,530 integers.
(Snapchat shares jumped 14% on possible TikTok ban)
The New York trading floor reacted negatively to Powell’s first of two appearances before US legislators, in which he stated that the Fed is ready to accelerate rate hikes if the economic data warrants it.
(Grupo Aval had profits of $2.48 trillion in 2022)
The Fed chief said the latest data has been better than expected and suggested that restoring price stability will require maintaining “tight” monetary policy for “some time”, something that did not go down well with the market.
(Dollar was close to trading below $4,700 this Monday).
The issuer has raised rates eight times since a year ago and in its last increase it reduced that increase to 0.25 points, placing it between 4.5% and 4.75%, the highest figure since September 2007.
(Dividends: the balance between reinvesting and rewarding the partner).
Investors had hoped the Fed would ease or pause that policy, but it seems increasingly clear that it will go hawkish instead, and analysts fear that at the next meeting the hike will again exceed targets. 0.25 points. In this sense, Wall Street nervously awaits the labor market report that will be published this Friday and that, if it shows solid figures, the Fed will give one more argument to toughen its actions.
EFE
