Categories: Markets

Intense volatility on Wall Street on Wednesday

Intense volatility on Wall Street on Wednesday

LAST UPDATE: 17:35

Just before the end of an hour session, the “recovery operation” on Wall Street from yesterday’s dive, which led the tech Nasdaq to record its worst daily performance in a year and a half, deflated, with indicators after the initial +1 %, to move in negative terrains

On the board, the Dow Jones industrial average, which at the beginning added almost 280 points or 0.84%, now moves to 33,120.31 points, losing 119.87 points or 0.36%, while the broader S&P 500 from +1 % in the first half hour, currently falls by 0.25% to 4,164.85 points. The tech Nasdaq, which previously climbed almost 165 points or 1.32% higher, is down 0.41% and stands at 12,439.28 points.

On Tuesday, the blue chips index lost more than 800 points, the S&P 500 fell 2.8%, while the technology index fell 4% lower, recording its largest percentage decline since September 8, 2020, according to data of Dow Jones Market Data.

High volatility remains the main feature of the market today, as investors remain cautious as they are faced with many concerns at once. Among other things, they are worried that the aggressive policy reduction of the Federal Reserve interest rates in an attempt to curb the galloping inflation could lead to a recession in the US economy, at a time when the risks of a slowdown due to global developments are increasing.

Risks related to fears of a significant slowdown in the Chinese economy as a result of global lockdowns in the Asian giant to deal with the outbreak of the coronavirus pandemic, but also the new supply chain upheaval caused by the ongoing war in Russia, energy prices and has intensified inflationary pressures worldwide.

Concerns about the worsening energy crisis escalated on Wednesday after Russian energy giant Gazprom announced it was suspending gas supplies to Bulgaria and Poland due to the inability of those countries to pay in rubles, as President Putin has called for. an attempt to mitigate the effects of Western sanctions on the Russian economy. Gas prices in Europe rose by 10%.

In terms of individual shares, Microsoft’s stock rose almost 6%, in the aftermath of yesterday announced quarterly results from the technology giant, which exceeded market estimates in terms of both profitability and sales.

On the other hand, the share of Alphabet, the parent company of Google, fell 2.65%, which announced sales and profits below expectations, while the Boeing title recorded a “dip” of more than 9%, falling to a 17-month low, after announced losses higher than analysts’ estimates.

Investors are expecting today, after the closing of the market, the quarterly results of Meta, Facebook’s parent company, but also the sizes of Qualcomm, PayPal and Ford Motor, which also announce the quarterly results today.

Source: Capital