New York stock markets closed lower on Monday (11) in a session marked by risk aversion. With an agenda of economic indicators depleted today, investors began the week monitoring comments from Federal Reserve (Fed) officials and the start of the earnings season, while recession fears persist. The focus of the week is on the release of the consumer price index (CPI), on Wednesday.
The Dow Jones Industrial Average closed down 0.52% to 31,173.84 points, the S&P 500 was down 1.15% to 3,854.43 points and the Nasdaq lost 2.26% to 11,372.60 points.
Kansas City District President Esther George reiterated on Monday her support for a plan to raise interest rates quickly to control inflation, but warned that an excessively “abrupt” monetary tightening could harm the US economy. . “Changes in policy carry over into the economy with a lag, and significant and abrupt changes can be unsettling for households and small businesses as they make the necessary adjustments,” she pointed out.
“We are in a scenario where central banks will continue to raise interest rates and the underlying narrative of the market remains one of potentially increasing recession risks,” Laura Cooper, Macro Strategist at BlackRock, told The Wall Street Journal. “This sets us up for a very volatile period ahead,” she adds.
For Oanda economist Edward Moya, Wall Street is preparing for corporate earnings and CPI on Wednesday. “Inflation is ‘public enemy number one’ and this will continue to raise fears that the Fed will aggressively tighten policy and send the US economy quickly into recession,” he said in a report sent to clients. “This is a huge week on Wall Street as the Fed’s expectations for the July 27 decision will be cemented after this inflation report and the big banks will tell us if the US consumer and economy are weakening faster than the US economy. most earnings estimates are suggesting. Second-quarter corporate earnings will suffer as inflation is much higher than expected,” he predicts.
Among the prominent shares are those of Twitter, which fell more than 11%, after Elon Musk gave up on buying the social network. Tesla shares, also owned by the billionaire, lost 6.55%. The S&P 500’s communications sector is the most devalued, with Alphabet (-3.07%), Netflix (-5.14%) and Meta (-4.68%).
*With information from Dow Jones Newswires
Source: CNN Brasil
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