wall street closed this Thursday a week shorter than usual with setbacks as a result of concern about the inflation and by the consequences that the rise in prices and the war in ukraine can have on the results of large American companies.
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The day’s session, the last of the week due to the Good Friday holiday, ended with a slight drop in Dow Jones Industrials and more important losses for the selective S&P 500 and the market composite index Nasdaq.
In the weekly computation, the Dow Jones Industrials fell one 0.8%, chaining three weeks of declines, while the S&P 500 lost one 2.1% and the Nasdaq a 2.6%.
Meanwhile, on the other side of the Atlantic, the large European markets have seen mixed trends, with declines in frankfurt Y London of 0.84% and 0.69%, respectively, and increases in Madrid (1.08%), Paris (0.63%) and Milan (0.17%).
In USA, The economic debate continues to be marked by the rise in prices, after the inflation rate stood at 8.5% in March, the highest figure since 1981, driven above all by the rising energy, food, and housing prices.
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The figures, published on Tuesday, even exceeded the expectations of some analysts who already predicted a very important increase in prices.
According to the latest data, american consumers are spending more and more on basic products such as gasoline and food, which a priori may cut sales in other sectors, despite the fact that many families accumulate significant savings after the pandemic.
This week, Wall Street began receiving first-quarter corporate results, which are eagerly awaited to see how inflation and turbulence from the war in Ukraine are affecting companies. big companies.
Madrid Stock Exchange.
For now, mainly the accounts of the banking sector And the impact of the conflict has become evident: five of the largest US banks have reported lower profits than a year ago, with declines of up to 46%.
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Several of these entities (including JPMorgan Chasethe largest bank in the country) have been forced to increase their reserves against credit losses due to the shock that the war has caused in the markets, although some of them (especially those more focused on investment) have benefited from the turbulence to make money in the stock market.
The market, moreover, continues to try to adapt to the shift in monetary policy brought about by the Federal Reserve (Fed), that after two years of stimulus measures to deal with the pandemic, it is now preparing several increases in interest rates to deal with inflation.
“Investors are trying to see if the Fed is on the right track. Can they land perfectly on reducing inflation without bringing down the economy?“, he explained to The Wall Street Journal David Donabedian, head of investment at CIBC Private Wealth.
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In the week as a whole, the Profits of the sector energetic, benefited from increases in the price of oil, and of commodity companies, while areas such as technological or the one of the communications recorded clear setbacks.
At the business level, the big story of the week came this Thursday with the multi-million dollar offer launched by Elon Musk, the CEO of Tesla, to get hold of Twitter.
Musk, who is the richest person in the world, according to Forbes, He has offered 43,000 million dollars to take over the entire social network and has threatened to sell all the shares he currently has if his proposal is not accepted.
After the news was known and after some important shareholders of the company announced their rejection of the acquisition and Musk himself said that he is not sure that he can go ahead, Twitter shares closed with a 1.8% decline.
EFE
