Wall Street posts losses this week in its main indicators after the rise of 0.75 points in interest rates by the US Federal Reserve (Fed) and the fear that it will continue its aggressive policy, in view of high inflation and the strength of the labor market.
(Read: recent devaluation of the peso has already ‘ate’ 15% of the tax).
According to provisional data at the bell on the New York Stock Exchange, andhe most affected is the Nasdaq composite index, which leaves an accumulated 5.7% and stands at about 10,475 pointss, with notable weekly falls in the technology giants Apple (-11.15%), Amazon (-12%), Microsoft (-6.14%) and Tesla (-9.21%).
To a lesser extent, they lower the selective S&P 500, which cuts 3.35% weekly, to about 3,770 units, and the Dow Jones of Industrials, which fell by 1.4% and stood at around 32,403 integers. The event of the week was the Fed’s decision to raise interest rates for the sixth consecutive time to a range of 3.75% and 4%, the highest level in the last 15 years, followed by comments from its president, Jerome Powell, on future prospects.
Powell indicated that there is still a long way to go due to high inflation (8.2%), although he opened the door to the possibility of reduce the rate hike at the next meeting or the next, and highlighted the strength of the labor market and moderate but stable consumer demand.
(Also: Official dollar rate in Colombia will be $5,061.21 until Tuesday).
Regarding the macroeconomic data, the October report on the labor market has been the focus, which reflected a rise in the unemployment rate to 3.7% and a slowdown in the creation of new jobs, up to 261,000, which has generated division due to its implications for monetary policy. All this has generated important movements in the debt market, where the yield on the 10-year Treasury bond began the week at around 4% but ended it above 4.17%, which has especially affected large companies technological.
At the corporate level, the arrival of businessman Elon Musk to Twitter after buying the social network for 44,000 million dollars, what his exit from the stock market has meant, and his first measures: firing numerous employees and proposing a monthly payment for verified accounts, since the tycoon admitted today “a massive drop in income” due to the stampede of advertisers.
In other markets, Texas oil has risen 4.8% this week and stands at $92.61, driven by the prospect that China, a large world oil consumer, will relax its restrictions to control covid-19. , and to a lesser extent by a weekly decline in US commercial reserves.
(Also: Musk Effect: Twitter laid off 50% of employees and closed offices).
EFE
