They could not repeat him Monday’s feat The key indicators of Wall Street closed in the red on Tuesday, although far from the lows of the day, with the extreme volatility still making its presence felt today as investors prepare for the monetary policy decisions of the Federal Reserve tomorrow.
US market indicators on Monday managed to recover the positive sign at the finish line, with the industrial Dow Jones returning from a slump of more than 1,100 units and the Nasdaq and S&P 500 from a dip of 4.9% and 4% respectively.
Geopolitical concerns as tensions in Ukraine appear to be escalating and worries about the impact on the US economy from the Fed’s shift to a more restrictive monetary policy have left no room for indicators to continue yesterday’s uptrend.
The two-day meeting of the US Federal Reserve starts today, with investors adopting a wait-and-see attitude in view of the statements of the chairman of the central bank on Wednesday about the economy and inflation.
Jerome Powell is expected to pave the way for a rise in US interest rates tomorrow in March, with the central bank expected to make three more rallies thereafter to tackle the jump in prices to a 40-year high.
Indicators – Statistics
On the board, the Dow Jones industrial average fell 66.77 points or -0.19% and closed at 34,297.73 points, while at the bottom of the day it was found to lose more than 800 points.
The broader S&P 500 lost 53.68 points or -1.22% at 4,356.45 points, while the tech Nasdaq fell 315.83 points or -2.28% to 13,539.29 points.
Of the 30 stocks that make up the Dow Jones industrial average, 9 closed with a positive sign and 21 with a negative. The biggest gains were made by American Express with gains of $ 14.18 or 8.92% at $ 173.11, followed by IBM at $ 136.10 with gains of 5.65% and Chevron at $ 132.59. with an increase of 4.25%.
The three stocks with the biggest losses were Salesforce (-3.43%), Microsoft (-2.66%) and Walgreens Boots Alliance (-2.65%).
At the same time, investors’ attention is focused on the announcements of the giants of the American economy for their performance in the previous quarter, as the American market is now at the heart of the period of results. IBM announced its results on Monday night, exceeding analysts’ forecasts, while 3M Co. announced today better-than-expected earnings for the last quarter.
For its part, Johnson & Johnson failed to confirm analysts’ forecasts for revenue for the fourth quarter. General Electric also lost market estimates.
At the macro level of the day, consumer confidence in the US fell in January for the first time in four months, the Conference Board announced today.
In particular, the Conference Board Consumer Confidence Index fell to 113.8 points from the downward revised December reading to 115.2 points. Analysts’ average estimates in a Bloomberg poll put the index at 111.2 points.
Meanwhile, the International Monetary Fund warned today that the global economy is entering a weaker position in 2022 than previously estimated, due to the persistence of the pandemic through continuous coronavirus mutations, which disrupts the supply chain, economy and with inflation lurking, remaining – also persistently – high.
Global growth is expected to “moderate” from 5.9% in 2021 to 4.4% in 2022, according to the Fund in the updated Global Economic Outlook (WEO) released today. This is half a percentage point lower than forecast in the IMF’s WEO in October (4.9%), largely reflecting the revised hand forecasts for the world’s two largest economies (US and China).
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