“The market recouped the losses of the morning. It seems that investors are finally comfortable with the idea that the Fed gave a very precise notion of how it will act this year in terms of raising rates and reducing its holdings “, summed up Peter Cardillo, of Spartan Capital.
Several members of the Federal Reserve are in favor of more significant increases in interest rates in the coming months to combat strong inflation, according to extracts from the minutes of the latest meeting of the central bank’s monetary committee on March 15-16 published on Wednesday.
They also plan to begin reducing the agency’s holdings as of May and reach, in three months, a reduction of 95,000 million dollars per month, of which 60,000 million will correspond to Treasury bonds and 35,000 million to titles attached to mortgage loans.
Some good news supported the indices in the afternoon.
On the one hand, weekly requests for unemployment benefits fell last week to a minimum since 1968, with 166,000 requests.
On the other hand, consumer loans grew strongly in February (+11.3% over the same month last year)“a sign that consumers are rushing to take out loans before money becomes more expensive,” Cardillo suggested.
Among the values of the day, HP rose 14.78% to 40.07 dollars per share after the announcement of a purchase of shares by Berkshire Hathaway, Warren Buffett’s conglomerate, which acquired 11.4% of the capital of the manufacturer of computers and printers.
Buffett’s investment fund invested about 4.2 billion dollars in HP in various operations this week, according to documents sent to the stock market authorities (SEC).
Twitter, the social network in which the founder of Tesla Elon Musk entered as a shareholder buying more than 9% of the firm’s shares, lost 5.38% to 48.04 dollars after strong increases in recent days.
Source: Ambito
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