Key Wall Street indexes are moving mixed on Tuesday, with the S&P 500 and Nasdaq losing their initial gains as investors try to gauge how the Federal Reserve will move in the coming months to tighten its post-relocation policy. by Jerome Powell at the helm of the central bank.
President Joe Biden’s announcement yesterday that he would nominate Powell for a second term as president of the Fed led the S&P 500 and the Nasdaq to new all-time highs, with the indexes losing ground in the end but closing negatively. sign. Industrial Dow Jones closed with small gains of 0.1%.
The market climate has been weighed down by Powell’s statements about the serious impact of inflation on the US economy and households, with investors worried that the Fed could move more aggressively next year to raise interest rates, causing shocks in markets. Investors are currently expecting the central bank to double its interest rates in 2022 from their current lows.
Bond yields continue to climb against the backdrop of estimates that the Fed will move faster to tackle inflation, with the 10-year yield rising to its highest level since October at 1.653% from 1.625% on Monday.
Indicators – Statistics
On the board, the Dow Jones industrial average gained 40.05 points or 0.11% at 35,659.30 points, while the broader S&P 500 lost 2.98 points or -0.06% at 4,679.96 points. Nasdaq technology is falling 80.38 points or -0.51% at 15,774.38 points.
Of the 30 stocks that make up the Dow Jones industrial average, 19 are moving with a positive sign and 11 with a negative one. The biggest gains are made by Chevron with gains of $ 2.58 or 2.27% at $ 116.50, followed by Merck at $ 82.97 with an increase of 1.63% and Travelers at $ 159.22 with gains 1.50%.
The biggest losses are recorded by Salesforce.com (-1.85%), Walt Disney (-1.70%) and Nike (-1.37%).
ΣMacro data released today by IHS Markit showed that private sector activity continued to grow strongly in November despite a slight slowdown since October.
In particular, the composite PMI rose to 56.5 points in November from 57.6 points in October, as rising prices, supply chain disruptions and the inability to fill job gaps continue to limit economic activity.
In the individual data, the index for the services sector was at 57.0 points from 58.7 points in October, a two-month low, while the manufacturing PMI at 59.1 points from 58.4 points last month, a two-month high.
“The US economy continues to grow rapidly,” said Chris Williamson, chief economist at IHS Markit. “Despite the slower pace of business expansion in November, growth remains above the long-term average of pre-pandemic research, as businesses continue to focus on boosting their capacity to meet growing demand.”
Investors are also monitoring oil prices after the White House announced plans to release 50 million barrels of the country’s strategic reserves in coordination with other countries. The WTI gained 1.4%, while Brent rose 1.6% in the wake of the announcements, as investors waited to see how OPEC and its allies (OPEC +) would react. OPEC + may adjust its output in response to the release of strategic stocks.