US stock indices slumped influenced by the sharp loss in growth stocks, after The Federal Reserve decided the biggest rate hike since 1994 to fight inflation, which fueled fears of a recession.
The Dow Jones Industrial Average lost 2.4% to close at 29,927.07 points. For its part, the S&P 500 lost 3.2% to 3,667.01 points. And finally the Nasdaq fell 4.1% to 10,646.10 points.
For its part, the leading S&P Merval index lost 1.6%, to 87,060.90 points, against an advance of 1.2% the day before due to opportunity purchases. In the leading panel, the main decreases were for Transportadora Gas del Norte (-6.4%), Cresud (-4.7%), and Transportadora Gas del Sur (-4.4%).
The disarmament of portfolios was manifested in the face of financial inactivity, since Friday and Monday the stock market will remain closed, as it is a holiday. “The markets are bad, there are sales wherever you look at it, not only because of the challenging internal issues that concern the Argentine reality, but the foreign (market) does not help either. It’s that simple and that’s why everything went down,” synthesized a private banking analyst.
“External moodiness once again drags down domestic assetssince the political noise and the local economic uncertainty are far from being able to act as a ‘shock absorber’, before which the flows are in command and thus deepen the falls”, said Gustavo Ber, from Estudio Ber.
On the other hand, the BCRA board ordered increase its reference rate by 300 basis points to 52% per year in the face of high inflation, which marked 5.1% in May.
In turn, the Government announced the creation of a Incentive Regime for Internal Fuel Supply (RIAIC) for refining companies that import gas oil (diesel) in order to avoid the lack of that fuel, which has affected the country for weeks.
Regarding the fixed income segment, Nominated bonds continued at historical lows and closed with heavy losses, reaching up to 5.9% (Global 2038).
Thus, the Argentine country risk climbs 3.6% to 2,185 units, a new maximum since the swap with private companies in September 2020.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
