Or index Dow Jones fell into agitated negotiations this Thursday (6), after the minutes of the last meeting of the Federal Reserve showed a more aggressive tone against inflation, driving down stocks in big tech companies and boosting cyclical sectors sensitive to the economy.
Six of S&P’s top 11 sectors retreated in early trading, while energy, finance and industrial gained.
The Dow Jones fell from a record intraday high after minutes from the US central bank’s December meeting signaled the possibility of interest rate hikes and earlier-than-expected stimulus withdrawals to curb inflation.
“The ‘hawkish’ tone of the FOMC (Federal Open Market Committee) minutes suggests that the central bank is concerned about inflation,” said Nancy Davis, founder of Quadratic Capital Management.
“We believe the Fed will likely be more prudent and take longer than the market expects to assess the economy before starting a cycle of higher interest rates and a balance sheet reduction plan,” he added.
So far this week, market participants have shifted away from high-tech growth stocks to focus on cyclical sectors such as industrials, energy and materials that will best benefit from a high-interest environment.
The banking sub-index rose 1.0%, following the yield on 10-year US government bonds, which reached its highest level since April 2021 on Thursday.
At 1:34 pm, BrasÃlia time, the Dow Jones index fell 0.35%, to 36,279.64 points, while the S&P 500 gained 0.16%, at 4,708.08 points. the technology index Nasdaq Composite advanced 0.44%, to 15,166.94 points.
Reference: CNN Brasil
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