Wall Street falls after the sale promoted by the Fed

April 7, 2022 | 9:13 a.m.

The decline in the shares of financial world and government bonds lasted another day as investors digested the possibility of more aggressive monetary tightening by the Federal Reservein addition to continuing to monitor the war in Ukraine.

At 8:50 am (Mexico City time), the S&P 500 it falls 0.01%, to 4,480.67 units. The nasdaq technology-focused down 0.09%, to 13,876.43 units; Meanwhile he Dow Jones Industrial Average it loses 0.32%, to 34,386.94 units, according to The Wall Street Journal.

In Mexico, the Price and Quotation Index (IPC) from Mexican stock exchange (BMW) rises 0.08%, to 55,485.84 points.

On the other hand, in Europe, the Stoxx Europe 600 pancontinental adds 0.2%. Healthcare and transportation stocks were among those that propelled the index higher. Ryanair holdings jump 6.3% and easyjet adds 2.3%.

While in Asia, the indices fell. The hang up seng Hong Kong lost 1.2%; in mainland China, the Shanghai Composite Index fell 1.4%. The Nikkei 225 of Japan lost 1.7%.

In the treasury Markets, 10-year US Treasury note yield traded around 2.634%, down from 2.606% on Wednesday, still ccontinues to haunt your highest level in three years.

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Fed moves

Wall Street indices fell this morning after the release of Fed minutes from a day earlier, which showed that central bankers considered raising rates by half a percentage point at their March meeting, rather than the quarter-point hike. with which they proceeded.

Investors therefore sold riskier assets in anticipation of a Federal Reserve more aggressive.

On Tuesday, the governor of the Fed, Lael Brainard⁠, a strong advocate last year for premature stimulus withdrawal⁠, first unsettled investors when he said the central bank was committed to taking steps that would reduce the inflation this year. That nervousness continued on Wednesday, after the fed minutes.

wall street recovers

Prior to this week, the US stock market had been in the midst of a brisk upturnwhich helped the indices erase many of the losses recorded in 2022.

The uptick, which began in mid-March, appeared to defy a host of ongoing issues, including the war in Ukraine, rising cases of COVID-19 in China and skyrocketing inflation that threatens to worsen supply chain grunts.

Also, next week will start the first quarter earnings season. Many investors say the results will likely influence the next phase of the stock market.

Analysts expect earnings of S&P 500 companies to have grown 4.6% during the period compared to the previous year, data from FactSet shows.

Analysts say the recent stabilization of some commodity prices has helped the stock market’s performance.

In the raw materials market, the oil rises this morning, after swinging back and forth between profits and losses, as traders weighed the prospects for more crude oil releases of strategic reserves, the prospect of tighter monetary policy from the United States and weaker demand from China, the main consumer, as it faces new outbreaks of COVID-19.

On the economic front, new data showed this Thursday that the new applications for unemployment benefits in the United States fell to a nearly 54-year low last week.

Initial jobless claims, a gauge of layoffs, fell to 166,000 during the week ending April 2, compared with a revised 171,000 the previous week, the report said. work Department.

Also read: Recession and stagflation loom as major global risks

mixed actions

HP shares rise 12%, after Berkshire Hathaway from Warren Buffet will reveal Wednesday in a filing that it has amassed a more than 11% stake in the computer and printer maker. The stake was worth more than $4.2 billion, according to HP’s closing price on Wednesday. Class B shares of berkshire down 0.01%.

Twitter rises 0.3%, as investors continued to digest the implications of the Tesla CEO’s involvement, Elon Muskat the social media company and your appointment to their board of directors. The actions of Tesla add 0.8%.

The actions of amazon.com up 0.3%. On Wednesday, the Journal reported that federal securities regulators are investigating how the mega-cap technology company has disclosed some details of its business practices, including how it uses data from third-party sellers for its private-label business.

On the other hand, the actions of shell down 1.5%, after the energy giant warned of a hit of up to $5 billion in the first quarter related to its decision to exit its joint ventures with the Russian energy giant gazprom after the Russian invasion of Ukraine.

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