Wall Street closed this Wednesday in red and the Dow Jones Industrials, its main indicator, fell a 1.63%when investors evaluate the last movement of the Reserva Federal (Fed) of USA raising rates by a quarter of a point and discuss what the central bank’s next moves might be.
At the close of business, the Dow Jones subtracted 530.49 points, until 32 thousand 030.11 units and the selective S&P 500 lost a 1.65% o 65.90 integersuntil three thousand 936.97 points.
For its part, the composite index of the Nasdaq market, in which the main technology companies are listed, fell a 1.60% o 190.15 unitsuntil 11 thousand 669.96 integers.
Later, however, stocks fell after Fed Chairman Jerome Powellnoted during a press conference that a rate cut this year was not part of the central bank’s “benchmark expectation.”
With this last increase, interest rates are situated in a range between 4.75% and the 5%.
In projections released along with its decision, the Fed indicated that the ultimate rate could end up in 2023 just above the 5%which points to limited space for further increases this year.
In addition, Powell told a news conference that the recent turmoil in the banking sector could slow the economy, which could cool inflation and limit the Fed’s next steps.
“The banking troubles just confirm the evidence for us that things are likely to get worse before they get better,” Rich Weiss, chief investment officer of multi-asset strategies at American Century Investments, said in remarks reported by The Wall Street Journal.
For her part, the secretary of the United States Treasury, Janet Yellenpromised this Wednesday that he will work with Congress to hold accountable the executives responsible for the fall of the Silicon Valley Bank and of the Signature Bankwhich unleashed a banking crisis in the country.
“It is important to make it clear that shareholders and debt holders of failed banks are not protected by the government and that taxpayers will not pay for the losses of these banks,” Yellen said during an appearance before a congressional committee.
All sectors closed in the red and the biggest falls were for real estate and finance, with falls of 3.64% and the 2.37%respectively.
Between the 30 values The Dow Jones also dominated the red and the biggest losses were fora Nike (-4.86%) y Boeing (-4.17%).
In other markets, Texas oil closed at $70.90 a barreland at the end of the trading session gold rose to thousand 970 dollars an ouncethe yield on the 10-year US bond fell to 3.45% and the dollar was losing ground against the euro, with a change of 1.0868.
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