Wall lost for the second consecutive session, with the technology sector continuing to face pressure after the worst sell-off in recent months in the US market, in the wake of the publication of the minutes of the last meeting of the US Federal Reserve. its monetary policy.
Publication of the minutes from the last meeting of the Federal Open Market Committee (FMOC) The Fed fell to the Wall yesterday, with the Nasdaq recording the biggest daily drop in 11 months. According to the minutes, among the Federal Reserve officials not only the acceleration of the reduction of interest rates, but also the shrinkage of the Fed balance sheet, amounting to 8.9 trillion. dollars.
The minutes provided more details on the Fed’s shift in December to a more aggressive monetary policy. The policy makers agreed to hasten the end of the emergency bond-buying program that was implemented in the midst of the pandemic and estimated that they expect three interest rate hikes of 25 basis points each in 2022.
“It is clear that the Fed will raise interest rates while it expects to normalize its portfolio,” former Treasury Secretary Steven Mnuchin told Fox Business Network. “The issue is how fast he will do it,” he added.
“Growth companies have been the main beneficiaries of the extremely low real and nominal interest rates, which have pushed valuations to high levels. “We saw it on Wednesday,” said Mark Haefele, UBS’s chief investment officer.
The technology sector is also under pressure from the upward trend of bonds. From Monday to Wednesday, his performance 10-year US government bond had been strengthened by about 20 basis points, while today it adds another 4 m. b. at 1.74%. The dollar notes losses of 0.2%.
At the macro of the day, initial US unemployment benefit applications increased in the last week of 2021 at a faster pace than economists expected, despite wider signs of improvement in the US labor market, amid the “turmoil” caused by rising coronavirus cases. New unemployment benefit applications for the week ended Jan. 1, 2022, rose to 207,000, up 7,000, according to data released by the US Department of Labor.
In addition, the jump in US imports in November led to a widening of the country’s trade deficit, which is on track to record the highest annual trade deficit in its history. Particularly, The trade deficit in November amounted to 80.2 billion. $ 67.2 billion, which was the revised measure for October, according to data released by the US Department of Commerce on Thursday.
Indicators – Statistics
On the dashboard, the industrial Dow loses 0.4% to 36,240 points, the widest S&P 500 falls by 0.33% to 4,685 points and the technological Nasdaq slides by 0.5% to 15,025.
From 30 shares that make up the Dow, 14 move with a positive sign and 16 with a negative. Travelers Cos (+ 1.83%) and JPMorgan (+ 1.05%) lead the gains, while IBM (-2.16%), United Health Group (-2.1%) and Boeing record the biggest losses. (-1.23%).
Bed Bath & Beyond announced unexpected losses for the third quarter and sales that did not meet expectations. However, its share jumps over 11%.
The retail pharmacy company Walgreens Boots Alliance is losing 0.38%, although the results it announced for the first quarter exceeded expectations and revised upwards its forecast for the year.
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