LAST UPDATE: 21.00
Intense volatility on the Wall in the last session of the week, as the restoration of calm in the initial trading gave way to negative signs with the Nasdaq recording the biggest losses.
The tone from the middle of today’s session was set by the unexpected drop in the University of Michigan’s US Consumer Confidence Index, which fell to its lowest level since October 2011.
In particular, the consumer confidence index for February stood at 61.7 points from 67.2 points in January and while analysts polled by Reuters expected a measurement at 67 points.
The current situation index slipped to 68.5 points from 72 points in January, while the expectations index also fell to 57.4 points from 64.1 points. At the same time, the index for the course of inflation on an annual basis increased to 5% from 4.9% in January, while the index for the course of inflation for the next 5-10 years remained unchanged at 3.1%.
Investors, meanwhile, are trying to reassess the Fed’s interest rate targets in light of the new jump in inflation. The market initially welcomed the jump to a new high of 40 years of inflation in the US yesterday with restraint, however, the intention of a more aggressive stance expressed by Fed officials led to intense nervousness, which expressed great liquidations, especially in the sensitive to rising interest rates. technology development industry.
Goldman Sachs estimated today that it is now expecting this year seven interest rate increases by 25 basis points from the Fed, up from five previously forecast.
For his part, HSBC analyst Ryan Wang said he also expects the Fed to raise interest rates more than previously expected, with the first in March at 50 points.
However, Fed officials contacted by CNBC, without naming them, expressed the view that such a large increase from the beginning is not the right step.
The. Are moving upwards today government bond yieldswith the 10 years to add 3 basis points to 2.059%, while the 2 years strengthened by 21 basis points to 1,585%, the largest daily increase since June 5, 2009.
On Friday dollar gains 0.2% according to the ICE US Dollar Index.
Indicators – Statistics
On the dashboard, the industrial Dow falls by 1.4% or 500 points to 34,730 points, the widest S&P 500 loses 1.8% to 4,420 points and the technological Nasdaq records losses of 2.5% at 13,810 points.
From 30 shares that make up the Dow, 14 move with a positive sign and 16 with a negative. The gains are led by Chevron (+ 1.58%), Walgreens Boots (+ 0.97%) and Merck (+ 0.93%), while the biggest losses are recorded by Salesforce (-2.68%), Nike (- 2.09%) and Honeywell International (-1.14%).
On the other hand, the positive corporate results that further strengthen the investment mood continue, with Newell Brands rallying more than 11% after exceeding the estimates for the fourth quarter.
Similarly, Zillow continues to rally 11% against the background of the fact that it showed gains of 1.07 dollars per share, instead of estimates for losses of 42 cents.
Under Armor, on the other hand, is in a liquidation cycle with losses of more than 9%, after focusing on the disruptions of the global supply chain, presenting its quarterly figures.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
