Investors are trying to come to terms with recent comments from the Fed Chairman, Jerome Powellwhich point further monetary policy tightening in the future and the projection of the US central bank that interest rates they would exceed the 5% mark in 2023, a level not seen since 2007.
Money market bets show at least two 25 basis point rate hikes next year and a terminal rate of around 4.9% mid-yearbefore falling to around 4.4% by the end of 2023.
A new economic report showed that US business activity contracted further in Decemberas new orders fell to their lowest level in just over two and a half years, but Declining demand helped significantly cool inflation.
This comes after data on Thursday showed low retail sales in Novemberdespite the fact that the labor market remained solid with the number of Americans who applied for unemployment benefits falling last week.
The Dow Jones Industrial Average fell 343.24 points, or 1.03%, to 32,858.98; the index S&P 500 give in 40.26 points, or 1.03%, at 3,855.49 units; and the Nasdaq Composite lost 66.23 points, or 0.61%, to 10,744.30..
The main Wall Street indices they hit a five-week low on Fridayon my way to end the week with losses of more than 2% each.
General Motors Co lost 2.7% after its Cruise robotaxi unit faced a safety investigation by US regulators.
Source: Ambito
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