The main Wall Street indicators are counterattacked after three days of free fall and while investors are preparing for the critical data that will be announced tomorrow on inflation.
On Monday, the industrial Dow Jones fell 2%, while the broader S&P 500 lost 3.2% and closed below the level of 4,000 units for the first time since March 2021. The technology Nasdaq plunged 4.3%.
In the last three days, the S&P 500 has fallen a total of 7.2% to the biggest three-day drop since March 2020 when the entire planet was facing the nightmare of the coronavirus pandemic.
Investors in the meantime are preparing for the data that will be announced tomorrow on inflation. Concerns have been mounting lately that the Federal Reserve will continue to tighten its policy until it sees signs that inflation has been brought under control, with no such thing appearing at the moment. Analysts expect government data to show annual inflation of more than 8% for April, well above the central bank’s 2% target.
Indicators – Statistics
On the board, the Dow Jones gained 349.16 points or 1.08% to 32,594.86 points, while the broader S&P 500 strengthened by 51.64 points or 1.29% to 4,042.88 points. The technology Nasdaq adds 199.05 units or 1.66% to 11,817.23 units.
Of the 30 stocks that make up the Dow Jones industrial average, 26 are moving with a positive sign and only four with a negative. The biggest increase is recorded by Microsoft with gains of $ 6.64 or 2.51% at $ 271.22, followed by Boeing at $ 136.54 with gains of 2.42% and Chevron with gains of 2.14% at $ 162.66
On the other hand, the three stocks with the biggest losses are 3M (-1.39%), Walmart (-0.51%) and Home Depot (-0.36%).
Richmond Fed Chairman Thomas Barkin said today that the central bank would do whatever it takes to bring inflation back to its official 2% target.
“We will do what we have to do,” Barkin said, while expressing confidence that the central bank could avoid a 1980s-type recession as it seeks to reduce inflation from the highs of the 40s. years he has climbed.
His confidence that the Federal Reserve can reduce inflation while keeping the economy strong, said the head of the New York Fed, John Williams.
“While it is a difficult task, it is not insurmountable. We have the tools to restore balance to the economy and restore price stability and we are determined to use them,” Williams said at a conference in Germany.
Source: Capital
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