Wall Street extended losses after the Fed’s decision to continue raising rates

Shares closed with a loss “less than the high point of the session, after the fourth rise of 75 basis points in interest rates and the Fed’s harsh comments,” analysts at consultancy Schwab said.

It was the sixth consecutive increase in reference rates ordered by the Fed since March.when they were between 0 and 0.25%, minimums intended to stimulate the economy after the crisis caused by the coronavirus. Now, rates are between 3.75% and 4%, the highest level in 15 years.

Fed Chairman Jerome Powell said Wednesday after the announcement that “time” will be needed before higher interest rates can contain inflation.and that this will imply a cooling of the economy.

“In a nutshell, hit the market with a stick”considered Jack Ablin, an analyst at Cresset Capital. “Hope for a Fed inflection faded” in its monetary policy, said Patrick O’Hare of Briefing.

Meanwhile, bond rates also took an upward slope, although they moderated their advance at the end of the session. The 10-year Treasury bill rate was 4.12% against 4.19% in the morning and 4.04% the previous day.

Likewise, weekly unemployment benefits fell 217,000 last week, showing a still dynamic labor marketsomething that the Fed believes may stimulate inflation.

The Labor Department will release official employment data for October on Friday.

At the same time, the growth of activity in the US service sector slowed more than expected in October, according to the ISM index, which fell 2.3 percentage points compared to September, to stand at 54.4%.

The energy sector (+2%) and industrial stocks (+1%) prevented a further decline in the Dow Jones. Aircraft maker Boeing concluded sharply higher (+6.34% to $156.75).