However, all three major US stock indices turned from green to red in the afternoon, with growth and interest rate-sensitive stocks falling from the head of the pack to the rear. The turnaround followed remarks by Federal Reserve Governor Lael Brainard, who reiterated the need for the central bank to deal “quickly” with the highest inflation in decades.
The S&P 500 lost 14.58 points, or 0.33%, to 4,398.02, while the Nasdaq lost 39.48 points, or 0.30%, to 13,372.48. The Dow Jones Industrial Average fell 88.19 points, or 0.26%, to 34,219.80.
“Comments from Fed officials have been more aggressive than markets expected”said Paul Nolte, portfolio manager at Kingsview Asset Management. “(Brainard) has been generally nondescript, but now she is more forceful in her comments, and that is making people sit up and take note,” the analyst expanded.
This day, oil also had a strong boost that put operators on alert, since if it continues on this path, the peak of inflation could not be the one of this last measurement as expected. Brent crude futures rose $6.16, or 6.26%, to $104.64 a barrel. While US West Texas Intermediate (WTI) gained $6.31, or 6.69%, to $100,609. On Monday, both contracts had fallen about 4%.
Source: Ambito
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