In addition to high interest rates, there is a long list of concerns that also plague the New York Stock Exchange
Wall Street erased the operation with which he opened the New York plaza and thus deepens the september crashmonth in which its main index, the Down Jones, lost 3.9%, the S&P 500 5.2% and the Nasdaq, which took the worst part, 7.4%.
This Wednesday, the S&P 500 gives up 0.3%, a day after falling 1.5% to its lowest level since June. He Dow Jones Industrial Average falls 0.2%, and the Nasdaq On the other hand, it rises 0.9%. Technology stocks felt some relief as pressure eased within the bond market as they retreated from their highest levels in more than a decade. High yields mean bonds pay more in interest, making investors less willing to pay high prices for stocks and other riskier investments.
All this has put an end to the old era of investing, where the mantra was “There is no alternative” to stocks because bonds paid meager returns. Now that bonuses pay much more and offer real alternatives, Share prices could face downward pressure for some time.
Still, the “Fed will not overreact“to stock price declines because the overall economy remains strong, strategists led by Mark Cabana wrote in a BofA Global Research report.
Wall Street: the data of the day
According to a report released Wednesday, orders for manufactured goods from long duration were stronger last month than economists expected. It’s the latest sign that the broader economy remains strong despite much higher interest rates.
The positive side of such strength means that the economy has so far avoided a long-predicted recession. But it could also maintain enough upward pressure on the inflation enough to encourage the Federal Reserve to keep rates high. Likewise, recent increases in oil prices also increase pressure on inflation
In addition to high interest rates, there is a long list of concerns that also plague Wall Street. The most immediate is the threat of a new US government shutdown.as the Capitol threatens a stalemate that could disrupt federal services across the country as early as this weekend.
A government shutdown could put millions of federal employees out of work, leave the military without pay, disrupt air travel and cut vital safety net services. Wall Street also faces instability in economies around the world, a strike by US auto workers that could increase the pressure inflationary pressure and the resumption of student loan repayments in the United States, which could reduce household spending. Foreign stock markets also rose slightly despite these pressures.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
