Wall Street closed today in red and the Dow Jones Industrials, its main indicator, fell 0.86%, ending the week in negative and stopping, at least for now, the summer “rally” that has been registered in the markets.
At the end of the operations in the New York Stock Exchange, the Dow Jones lost 292.30 points to 33,706.74, which represents a weekly drop of 0.2%.
The selective S&P 500 fell 1.29%, or 55.26 points, to 4,228.48, while the Nasdaq Composite Market Index fell 2.01%, or 260.13 points, to 12,705.22.
With weekly drops of 1.2% and 2.6% respectively, those two indicators put an end to four consecutive weeks of gains in which they had recovered some of the ground lost in the first half of the year, although both remain a long way from the levels at which they ended 2021.
According to analysts, what heavier these days was the prospect that the Federal Reserve (Fed) can aggressively continue its policy of raising interest rates to combat inflation.
The publication of the minutes of the last meeting of the Fed and statements of some of its members have come to dash the hopes of some investors, who trusted that the central bank American would choose to moderate hikes so as not to cool down the economy too much.
Although the minutes released this week point out the need to assess the impact that the rise in price of money is havingthe Fed also makes it clear that rates will continue to rise in the short term.
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Now it remains to be seen if this week is just a pause or if it definitively marks the end of the recovery that had been seen on Wall Street.
The drop these days has been especially clear for sectors that, such as technology and others considered of risk, they had bounced with more force from the annual minimums that they touched in June.
“We have seen a strong rally in risk assets recently and we may be seeing signs of exhaustion,” analyst Craig Erlam of Oanda said in a note today.
According to Erlam, the recent rises in the market have been based mainly on some signs that inflation is slowing down, but also on “a healthy dose of hope”.
“There is still plenty of skepticism and now the data has to deliver,” said the expert, who believes investors are waiting for some “catalyst” that can “change the dynamics in the markets.”
Today, the biggest losses were for non-essential goods companies (-2.1%), financial companies (-2.02%) and the technological ones (-1.83%), while only energy (-0.02%) and sanitation (0.27%) ended in green.
Among the thirty values of the Dow Jones, highlighted the decreases of Boeing (-3.42%), JPMorgan Chase (-2.47%) and Nike (-2.46%). The best stops were Johnson & Johnson (1.52%), MSD (0.74%) and UnitedHealth (0.57%).
In the oil market, the reference barrel price in the United States today accumulated its third day in a row on the rise, which was not enoughicient to compensate for the clear declines on Monday and Tuesday and left the quote with a weekly retracement of 1.43% to $90.77.
In other markets, at the close of trading, gold fell to $1,760.8 the ounce, the return on the US 10-year bond rose to 2.979% and the dollar gained ground against the euro, with a change of 1004.
