The Dow Jones index rose 1.1% and the S&P 500 1.4%, while the Nasdaq rose 1.7%. After a black Monday, the Dow Jones index fell again this Tuesday by 0.5% to 30,364.83 points and the S&P500 by 0.4% to 3,735.48 points.
The nasdaqwith a strong technological coloration, posted a slight recovery, gaining 0.2% to 10,828.35 points.
The markets anticipate “To 90% a 0.75 percentage point increase in key rates today and there is another 10% chance the Monetary Committee will raise rates by a full percentage point,” warned Art Hogan of National Securities in a note.
“The context is one of the most complicated in years and in terms of market prices we have reached capitulation”, the analyst pointed out, indicating that the S&P 500, the most representative index of the US market, had lost almost 10% in just four sessions.
“Since the end of the financial crisis (in 2008), we have only seen a market crash similar to this three times,” Art Hogan pointed out, citing as an example the month of August 2011, when the rating agencies downgraded the note of the US debt, which was very close to declaring bankruptcy due to a confrontation with Congress.
The Fed’s Monetary Committee should make a decision by 3pm. on Wednesday (Argentina time), which will be followed by a long-awaited press conference by the president of the Central Bank, Jerome Powell.
“All eyes will be on the Fed’s monetary decision,” Wells Fargo analysts acknowledged.
The monetary institution will also announce new economic forecasts.
Yields on 10-year US government bonds moderated slightly but remained near their highest since 2011, at 3.37%, down from 3.47% the day before. The dollar was stabilizing after rising to a 20-year high on Tuesday.
For its part, in a very rare event, the European Central Bank (ECB) held an emergency meeting in order to calm tensions over debtor rate differentials between the countries of the euro zone.
Source: Ambito
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