Wall Street It operates this Wednesday with its main indices in red, extending yesterday’s losses in a week marked by the holiday last Monday. Investors are worried about the global economic situation and the specter of a return to inflation high due to the escalation of oil prices.
The S&P 500 index falls 0.8%. The Dow Jones Industrial Average fell 0.6%, to 34,441.27 points and the Nasdaq lost 1.1%, weighing down the New York market.
In addition, several companies made big moves after presenting results and other updates. Roku rose 8.6% after giving investors an encouraging financial update and announcing that it will cut 10% of its workforce. AeroVironment soared 27.5% after the drone maker raised its sales forecast for the year. And after the final bell of today’s session, GameStop and Dave & Buster’s will publish their latest results.
Wall Street: short week and lean performance
Investors face a week of volatility, after the Labor Day holiday in the United States and a very busy month of August. However, the US service sector continues to enjoy good health, according to a survey by the Institute for Supply Management.
The survey showed that the sector, that employs the majority of Americans, grew in August at a faster rate than economists expected. That item is one of the most important pieces of the US economy and has remained resilient throughout 2023 despite persistent inflation and the rise of the interest rates that squeeze consumers.
Subsequently, bond yields rose after the report was released. The yield on the 10-year Treasury bond, What influences interest rates? of mortgages and other loans, rose to 4.29% from 4.25% prior to the publication of the survey.
Meanwhile, the 2-year Treasury yield, which follows the expectations of the Federal Reserve, it rose to 5.01% from 4.96% just before the release of the poll results. The dominant economic theme remains inflation and interest rateswhich the Fed has boosted in an effort to lower prices.
Likewise, a report from the Supply Management Institute (ISM) indicated that its non-manufacturing PMI rose to 54.5 last month, the highest reading since Februaryfueling concerns about a rate hike and affecting investor confidence.
Wall Street and oil: another discouraging data for the market
A recent upturn of crude oil prices also raised fears of higher inflationary pressures that could force the Fed to maintain high rates for longer. According to analysts, the slowdown in economic growth in other parts of the world has affected risk sentiment in the last days.
Investors expect the US central to moderate future rate hikessince inflation has been decelerating for months.
In this context, Wall Street hopes that the organization commanded by Jerome Powell keep your benchmark interest rate stable at your next meeting in September.
Source: Ambito
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