Fifth day of losses for the industrial Dow Jones and the S&P 500 on Wall Street

The main Wall Street index closed lower on Tuesday, with the Dow Jones industrial average and the broader S&P 500 retreating for a fifth straight session amid nervousness as investors prepare for the Federal Reserve’s crucial monetary policy announcements tomorrow.

On Monday, the Dow Jones industrial average fell 876 points or 2.79% to 30,517 points, while the broader S&P 500 lost 151 points or 3.88%, slipping into a bear market. The technology Nasdaq fell 531 points or 4.68%.

The shake-up in the US market comes just before the Federal Reserve monetary policy decisions in the wake of data released last week and showed a new jump in annual inflation in May at a high of 40 years.

The two-day meeting of the US Federal Reserve ends tomorrow, culminating in anxiety about how officials will react to the unprecedented price rally in recent months. Analysts do not rule out the possibility that the Fed will announce an increase in interest rates by 75 basis points tomorrow, in a move that just a few days ago would have been considered unthinkable.

The central bank will announce tomorrow, along with its interest rate decisions, and its forecasts for the growth rates of the US economy and inflation. Concerns have been growing in recent weeks that the Fed’s aggressive strategy to curb inflation could lead to a recession in the US economy.

Indicators – Statistics

On the board, the Dow Jones lost 151.91 points or -0.50% and closed at 30,364.83 points, while the S&P 500 fell 14.15 points or -0.38% to 3,735.48 points. The technology Nasdaq strengthened by 19.12 points or 0.18% to 10,828.35 points.

Of the 30 stocks that make up the Dow Jones industrial average, 11 closed with a positive sign and 19 with a negative. The biggest increase was recorded by Boeing with gains of $ 6.30 or 5.44% to $ 122.16, followed by Microsoft with $ 244.49 with an increase of 0.92% and Apple with gains of 0.67% at $ 132.76

On the other hand, the three stocks with the biggest losses were Procter & Gamble (-3.12%), Coca-Cola (-2.74%) and UnitedHealth Group (-1.69%).

Meanwhile, the 10-year yield in the US gains 9 basis points and climbs to 3.45%

At the end of the day, data released today showed that wholesale prices jumped again in May, fueling inflationary pressures again.

In particular, the producer price index increased by 0.8% since April and 1008% from a year earlier, according to data released by the US Department of Labor. This followed a 0.4% increase last month.

It is noted that the average estimates of analysts in a Bloomberg poll spoke of a monthly increase of 0.8% and 10.9% from May 2021. Excluding food and energy, the structural index increased 0.5% in May from last month and 8.3% from May 2021.

In business developments, the Oracle database giant jumped 10.5% after the announcement of quarterly results that exceeded analysts’ estimates, although the guidance lost Wall Street forecasts.