Wall Street traded lower on Monday, with investors wary of last week’s strong gains and the president of the US Federal Reserve today more worried about inflation.
The Dow Jones industrial average lost 200 points, ending a five-day rally, as Fed Chairman Jerome Powell left open the possibility of a more aggressive tightening of monetary policy in the coming months due to rising inflation.
Powell said today that the central bank should move “fast” to reduce excessively high inflation. “There is an obvious need to move quickly to return the monetary policy stance to a more neutral level and then move to more restrictive levels if needed to restore price stability,” he told a National conference. Association of Business Economics.
“Once we conclude that it is appropriate to move more aggressively, raising interest rates by more than 25 basis points in a meeting or meetings, we will do so,” he said.
The US Federal Reserve raised interest rates last week for the first time since 2018. The increase was by 25 basis points, with only one member of the Commission disagreeing, demanding a larger increase of 50 basis points.
Powell also reiterated in his speech that the shrinkage of the Fed balance sheet could begin in May this year.
Indicators – Statistics
On the board, the Dow Jones lost 201.94 points or -0.58% and closed at 34,552.99 points, while the broader S&P 500 fell 1.94 points or -0.04% to 4,461.18 points. The technology Nasdaq slipped by 55.38 points or -0.40% to 13,838.46 points.
Of the 30 stocks that make up the Dow Jones industrial average, 14 closed with a positive sign and 16 with a negative. The biggest gainers were Chevron with gains of $ 2.91 or 1.8% at $ 164.64, followed by Dow with $ 63.34 with gains of 1.52% and Caterpillar with gains of 1.27% at $ 223.71
The three stocks with the biggest losses are Boeing (-3.59%) after the news that a 737 aircraft crashed in southwest China, Home Depot (-3.34%) and Salesforce (-2.32%).
Meanwhile, Ukraine’s refusal today to accept the Moscow ultimatum on the surrender of all Ukrainian units in Mariupol, as the relentless bombing of the city continues, has once again dashed hopes of progress in the two sides’ negotiations. .
Ukrainian President Volodymyr Zelensky made it clear today that Ukraine “can not accept any Russian ultimatum” and said that any agreement to end the war would have to be approved by the Ukrainian people.
“People need to talk and respond to this or that kind of compromise. And who they are (the compromises) is the subject of talks and understanding between Ukraine and Russia,” Zelensky said in an interview with the television network. Suspilne.
In business developments, billionaire investor Warren Buffett’s Berkshire Hathaway has announced that it will acquire the insurance and reinsurance company Alleghany Corp for $ 11.6 billion.
Source: Capital
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