New York stock exchanges closed trading this Monday, 16, without a single direction, but with a negative bias. Of the three main stock indices on Wall Street, two ended the day lower, with the Dow Jones in the blue supported by oil stocks, which had strong increases following the price of oil in the futures market. Fresh comments from the Federal Reserve (Fed, the US central bank) in defense of monetary tightening in the US and weak data from the two biggest global powers pressured the papers throughout the day.
The Dow Jones ended up 0.08% to 32,223.42 points, the S&P 500 was down 0.39% to 4,008.01 points, and the Nasdaq ended the day down 1.20% to 11,662, 79 points.
In an event this Monday, the president of the New York Fed, John Williams, once again defended an agile monetary tightening in the US to combat strong local inflation, “problem number one” of the American central bank at the moment.
The prospect of less relaxed financial conditions continues to harm shares of high-tech companies, which are sensitive to the trajectory of interest rates. Among the main declines in the sector on Monday, Tesla (-5.88%) and Amazon (-1.99%) stood out.
Twitter shares plunged 8.18% amid the troubled process of acquiring the company by Tesla CEO Elon Musk. Earlier, the billionaire responded sarcastically to posts by the current CEO of the social network, Parag Agrawal, about the presence of robotic accounts on the platform. The topic was reason for Musk to claim last week that he has put the Twitter purchase “on hold.”
In the broader picture, Monday’s trading was once again of restrained risk appetite on Wall Street, after China’s industrial and retail data disappointed lower, as did the US Empire State Industrial Activity Index for May. According to Oanda analyst Edward Moya, the indicators reinforced “risks of stagflation and a recession much sooner” than expected.
Despite the “severe surprise” in the US data, Oxford Economics says it is not so crucial, while Chinese indicators indicate that problems in the country’s production chain could extend into next month, as China relaxes its restriction measures against covid-19.
Contrary to most of the US stock market, oil stocks rose sharply on Monday amid the sharp rise in the barrel of oil on the futures market. Two of the top US companies in the industry, Chevron and ExxonMobil, rose 3.09% and 2.44%, respectively.
Source: CNN Brasil
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.
