Wall Street digests the Fed rate hike poorly and closes the week in the red

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It was difficult for Wall Street to assimilate the announcement of the rise in interest rates by the Federal Reserve (Fed) of the United States and that translated into high volatility that made its main indicator, the Dow Jones Industrial Average, on Thursday recorded its worst day since 2020.

This Friday the stock market closed with its main indicators in red, although with lower percentages than the previous day.

At the end of trading on the New York Stock Exchange today, the Dow Jones lost 98.60 points to 32,899.97, while the selective S&P 500 fell 0.57%, or 23.53 integers, to 4,123. ,3. 4.

For its part, the composite index of the Nasdaq market, where the main technology companies are listed, decreased by 1.40% or 173.03 points and closed at 12,144.66.

A much less severe fall than Thursday’s of almost 5%.

Last Wednesday, the Federal Reserve (Fed) of the United States announced a rise in interest rates of half a point with the aim of fighting runaway inflation, the biggest rate hike in more than two decades.

The increase, which has the objective of mitigating the high rate of inflation, was welcomed by the stock market at first, at the close on Wednesday, but on Thursday all the indicators reacted downwards.

The concern about inflation -which last March stood at 8.5%, the highest recorded since 1981- by investors made the good data on unemployment in the United States go almost unnoticed in the stock market.

Before today’s opening bell rang, the Bureau of Labor Statistics (BLS) announced that the US unemployment rate stood at 3.6% in April – the same number recorded in March and the lowest since the start of the pandemic-, a month in which there were 5.9 million unemployed.

In the fourth month of the year, furthermore, job creation was robust, with 428,000 more jobs.

The Fed’s announcement has also influenced the reference 10-year Treasury bond in the United States, which reached a return of 3.14% this Friday, the highest since 2018.

The weekly calculation of the sectors was colored red, with the energy sector being the only one that achieved gains (4.40%), since the Texas barrel has appreciated by 6.22%.

This rise shrugs off concerns about global economic growth, as looming European Union (EU) sanctions on Russian oil point to more limited supply.

For their part, the sectors that fell the most were non-essential goods (-7.89%) and real estate (-7.54%).

At the corporate level, the American pharmaceutical company Pfizer announced on Tuesday net profits of 7,864 million dollars in the first quarter of 2022, 61% more than the 4,877 achieved in the same period last year, thanks, in large part, to sales of its covid-19 vaccine.

The American pharmaceutical company Moderna also earned between January and March 3,657 million dollars, almost three times more than the 1,221 million achieved in the same quarter of 2021, thanks to sales of its vaccine against covid-19, which shot up to 5,925 million. of dollars.

Regarding the weekly evolution of the great values ​​of the international market, Paris lost 4.22%; Milan, 3.20%; Madrid, 3.05%; Frankfurt, 3.01% and London, 2.08%.

In Asia, Hong Kong lost 5.16%, while Tokyo gained 0.56%.

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