Back to ‘red’ for Wall – Nasdaq at -1.3%

The main indicators of the Wall are moving again in negative territory, after the reaction they took yesterday, interrupting a two-day sell-off, with the investors weighing the increasingly harsh monetary policy announced for the near future by the US Federal Reserve.

On a weekly basis, all three indices are heading towards losses, which will mean the end of three consecutive weeks of gains. The tone of this 5-day meeting was given by the publication of the minutes from the meeting of the monetary policy committee of the Federal Reserve in March, through which it appeared that its officials plan to reduce its balance sheet by trillions, by selling bonds worth up to 95 billion At the same time, officials are considering one or more interest rate hikes of 50 basis points, if needed for the fight against inflation.

Analysts estimate that shares will strengthen next week in anticipation of a barrage of strong corporate results for the first quarter of 2022, with the banking sector in focus.

“Investors are betting on positive results as the market has recovered from the climate of uncertainty,” said Peter Cardillo, an economist at Spartan Capital Securities.

The US market is unlikely to return to February lows, “but we see a stagnation in trading as the Fed becomes more aggressive in tackling inflation,” he said.

Former New York Fed Chairman Bill Dudley’s comment that the US Federal Reserve should “force” shares to fall is still being debated by market participants.

Thomas Lee, an analyst at Fundstrat Global Advisors, points out that Dudley’s argument makes no sense.

“High US inflation is due to a series of effects on the supply of goods, the rally in oil and gas prices and the jobs that have been lost,” he wrote. “How could a stock crash that” impoverishes “the rich de-escalate inflationary pressures?” he wondered.

In the meantime, the yield of 10 year US government bond strengthened increased by 1.3 basis points to 2.668%, rising for the sixth consecutive session, reaching a high of almost 13 months on Thursday.

The dollar adds 0.2% and is on a profit trajectory (1.3%) on a 5-day basis, while earlier in the week it reached its highest level since May 2020.

Indicators – Statistics

On the dashboard, the industrial Dow Jones falls by 0.1%, to 34,560 points, the widest S&P 500 records losses of 0.45%, at 4,480 units and the technological Nasdaq loses more than 1% at 13,710.30.

From 30 shares that make up the Dow, 15 stocks are moving with a positive sign and equal numbers with a negative. Chevron (+ 2.1%), United Health Group (+ 1.1%) and Verizon (+ 1%) are leading the gains, while Boeing (-2%) and Apple (-1.46) are the biggest losers. %) and Microsoft (-1.34%).

Tesla is down 2.7% even though Elon Musk pledged on Thursday for deliveries of the Cybertruck pickup and the Tesla Semi in 2023.

The WD-40 is up more than 12% after the maintenance and cleaning company announced a big increase in profits and predicted that high inflation would have little effect on the year ‘s profits.

Finally, Biogen remains virtually unchanged, following the announcement by Centers for Medicare and Medicaid Services, which oversees the Medicare program, that they have finalized their policy to cover the controversial Aduhelm Alzheimer’s disease produced by the company.