Wall Street closed this Tuesday in red and the Dow Jones of Industriales, its main indicator, fell a 1.72% after the president of the Federal Reserve of USA (Fed)Jerome Powell, will anticipate an acceleration in interest rate rises.
At the close of business in the NYSEthe Dow Jones cut 574.58 pointsuntil 32 thousand 856.86 unitsand the selective S&P 500 backed up a 1.53% o 62.05 integersuntil three thousand 986.37 points.
The Nasdaq Composite Market Index, which brings together large technology companies, lost a 1.25.% o 145.40 unitsuntil 11 thousand 530.33 integers.
The New York parquet reacted negatively to Powell’s first of two appearances before US lawmakers, in which he stated that the Fed is ready to accelerate rate hikes if the economic data justify it.
The Fed chief said the latest data has been better than expected and suggested that restoring price stability will require “tight” monetary policy for “some time”, something that did not go down well with the market.
The central bank has raised rates eight times in the last year and in its last rise it reduced that increase to 0.25 pointsplacing them in a fork between the 4.5% and the 4.75%the highest figure since September 2007.
Investors had hoped earlier in the year that the Fed would ease or pause that policy, but it seems increasingly clear that it will go hawkish instead and analysts fear that at the next meeting the hike will again exceed the limits. 0.25 points.
In this sense, Wall Street nervously awaits the February job market report to be published this Friday and which, if it shows solid figures, will give the Fed one more argument to toughen its actions.
The pessimism was reflected in the debt market, where the yield on the 2-year Treasury note surpassed the 5% for the first time since 2007and the title to 10 years passed the 4%although later it moderated.
All sectors closed with losses, led by financial companies (-2.54%), real estate (-2.39%)of basic materials (-2.01%) and energy (-1.74%).
All 30 Dow Jones stocks, except for MSD (0.17%)ended in red, with the most outstanding descents for Walgreens (-3.70%), Goldman Sachs (-3.08%) y Caterpillar (-3.06%).
In other markets, Texas oil closed at $77.58 and at the end of the trading session gold fell to thousand 819 dollars an ouncethe yield on the 10-year US bond stood at 3.972% and the dollar was gaining ground against the euro, with a change of 1.055.
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