Major Wall Street stocks are trading heavily in early trading on Monday after last week’s sharp fluctuations amid concerns about the outlook for the US economy amid the Federal Reserve trying to curb higher inflation in 40 years. .
The Dow Jones Industrial Average and the broader S&P 500 closed last week with small losses of 0.2%, while the technology Nasdaq fell 1.5%. The weekly losses came after wild fluctuations for the indices, with the Dow losing more than 1,000 points on Thursday, in the worst session of the last five years, after jumping 900 points on Wednesday.
Last week, the Fed raised interest rates by 50 basis points to 0.75% to 1%, with central bank chairman Jerome Powell reassuring, assuring markets that the bank was not considering higher interest rate hikes of 75 basis points. could derail economic growth.
The statements of Atlanta Fed President Raphael Bostic to Bloomberg were on the same wavelength. “For me, 50 basis points is already a pretty aggressive move. I do not think we need to move even more aggressively,” Bostic said in an interview with the agency.
Indicators – Statistics
On the board, the Dow Jones lost 378.73 points or -1.04% at 32,550.95 points, while the broader S&P 500 fell 55.35 points or -1.34% to 4,067.99 points. The technological Nasdaq drops by 206.01 units or -1.70% to 11,940.11 units.
Of the 30 stocks that make up the Dow Jones industrial average, only three are moving with a positive sign and 27 with a negative. The biggest increase is recorded by Home Depot with gains of $ 2.49 or 0.85% at $ 296.80, followed by Walgreens Boots Alliance at $ 44.09 with an increase of 0.23% and Walmart with small gains 0.11% to $ 149.72
On the other hand, the three stocks with the biggest losses are Boeing (-3.39%), Chevron (-3.25%) and Visa (-2.39%).
Meanwhile, the upward trend in bond yields continues to put pressure on the indices. The yield on the 10-year US is close to 3.12% having surpassed earlier and 3.2% after closing last week at the highest level since November 2018.
The climate is aggravated today by the worrying data from China. Government data released today showed that exports rose 3.7% year-on-year in April, slowing significantly from the previous month when they jumped 15.7%. Imports, meanwhile, rose just 0.7%, reflecting weak demand.
In business developments, US-based biotechnology company BioNTech announced that first-quarter earnings more than tripled to 3.7 billion euros or 14.24 euros per share, from 1.13 billion euros or 4.39 euros per share. Revenues climbed to 6.38 billion euros from 2.05 billion euros.
Source: Capital
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