Intense volatility and sign exchanges were for another day the main features of the Wall Street meeting, which ended with small changes and a mixed picture for the indices, as the growing fears for recession of the American and world economy kept “numb” investors on Wednesday.
Investor skepticism was evident from the first minutes of the session, as it was preceded by the final measurement of the growth rate of the US economy in the first quarter of the year. The data showed that the contraction of the US economy in early 2022 was slightly higher than previously announced, raising fears that persistently high inflation “hurts” the world’s largest economy and “gnaws” corporate profits. .
According to the data released, US GDP shrank at an annual rate of 1.6%, declining for the first time since the outbreak of the pandemic in early 2020. The initial measurement showed a slightly smaller decline of 1.5% of GDP .
The investment appetite was further dampened by the comments of central bankers at the annual conference of the European Central Bank, on the other side of the Atlantic, which was attended by the head of the ECB, Christine Lagarde, and the chairman of the Federal Reserve, Jerome Powell. Bank of England, Andrew Bailey, and other central bankers.
Investors’ psychology was “hurt” mainly by the re-“warning” of the Fed chairman, Jerome Powell, during his position from the podium of the ECB conference in Sintra, Portugal, that the US Federal Reserve will not leave the economy slip into a “high inflation regime”, even if it means raising interest rates to levels that undermine growth.
The US central banker ‘s comment, although he did not add anything new to the public debate, is seen as a confirmation of growing estimates that the risk of recession for the US and global economies is now more visible than ever.
To the alarm bells ringing for the impending recession today was added that of JPMorgan, which in a note released today states that “it makes sense to take into account the risk of slipping the US economy and / or the world economy in recession this year “, adding that its estimates for the growth rate in the second half of the year have changed.
Indicators – Statistics
In the midst of this climate, volatility once again prevailed on the Wall Street charts, with indices changing intra-conference signs, but investors were not in the mood to clearly lead the indices either up or down.
Thus, the Dow Jones industrial average, which moved to the green for most of the session, finally closed with an increase of 82.32 points or 0.27%, to 31,029.31 points, not far from the highs of the day.
In contrast, both the S&P 500 and the Nasdaq moved mainly in the red, but both closed almost unchanged, far from the lows of the day. In particular, the S&P 500 ended the session at 3,818.83 points, with losses of 0.07%, while the technology index ended at 11,177.89 points, just 0.03% lower.
The image on the blue chips index is almost divided, with 14 stocks closing higher and 16 losing. The highest gains were recorded by the shares of McDonald’s with + 2.02%, Microsoft with + 1.47% and UnitedHealth with + 1.43%, while the biggest drop was recorded by the titles of Caterpillar (-2.11%), Chevron ( -1.97%) and American Express (-1.91%).