LAST UPDATE 22:35
Wall Street indexes are trying to limit their losses in the last hour of trading as investors await the decisions of the Federal Reserve tomorrow in the wake of the data that showed a new jump in producer prices in the US, raising concerns that upward pressure on inflation are expected to recede soon.
Figures released today showed a 0.8% rise in producer prices in November from the previous month and an annual jump of 9.6% revived estimates that the Federal Reserve will soon abandon the highly accommodative monetary policy stance to deal with high inflation. The average estimates of analysts in a Wall Street Journal poll spoke of a monthly rise in prices by 0.5%.
Investors are expecting Fed officials to announce tomorrow, after the conclusion of the central bank monetary policy meeting, the faster contraction of the bond buying program, while special attention is expected to be paid to the latest financial forecasts and interest rate estimates22 Analysts do not rule out the possibility that the Fed will raise interest rates again next year in order to tame inflation, which has soared to near 40-year highs.
Indicators – Statistics
On the board, the Dow Jones industrial average fell 26.51 points or -0.07% to 35,624.44 points, while the broader S&P 500 lost 24.14 points or -0.52% to 4,644.83 points. The technological Nasdaq after a dive of 2% earlier loses 137.34 points or -0.89% at 15,274.40 points.
Of the 30 stocks that make up the Dow Jones industrial average, 15 are moving with a positive sign and 15 with a negative. The biggest gains were made by Travelers with gains of $ 3.96 or 2.59% at $ 157.14, followed by Goldman Sachs Group at $ 391.23 with an increase of 1.71% and Merck at $ 73.70 with gains of 1.33%.
The three stocks with the biggest losses are Salesforce.com (-3.84%), Microsoft (-3.13%) and Cisco Systems (-1.13%).
The industrial Dow Jones and the wider S&P 500 closed yesterday with the biggest losses since December 1 in the climate of concern created by the lightning spread of the micron coronavirus mutation in dozens of countries and the nervous waiting for the Fed decisions.
Investors are watching with concern the rapid spread of the micron that has forced several governments to adopt strict measures to curb the virus.
The micron strain now accounts for 3% of Covid-19 cases in the US, up from just 0.1% in early December.
At the same time, hospitalizations are rising rapidly in New York State, as the governor of the state, Kathy Hawkul, announced today. In Philadelphia, meanwhile, entry to bars and restaurants from Jan. 3 will only be on display with a vaccination certificate, while California has reinstated the Indoor Masks Directive, effective Wednesday.
Meanwhile, the International Energy Agency has downgraded its 2022 supply forecast by non-OPEC producers by 100,000 barrels per day, as well as its demand forecast for the same amount, amid estimates that the jump of cases due to the micron will hit the global recovery.