The main indices of Wall Street plummet this Friday, since the returns of the US treasury bonds Near multi-year highs after hawkish comments from Federal Reserve Chairman Jerome Powellwhile the conflict in middle East keeps investors in suspense.
In that context, Israel devastated a district in northern Gaza and attacked an Orthodox Christian church where other people were taking refugewhile making it clear that an order to invade Gaza is expected shortly.
Meanwhile, in a speech given at the Economic Club of New York, Powell assured that the strength of the US economy and Persistent tight labor markets could require tougher interest rates to control inflation.
So things are, the Dow Jones falls 0.4%, the S&P 500 0.7% and the Nasdaq 1.1%, deepening the losses accumulated during the last few days; and taking into account today’s movements, all three indices are headed for weekly declines.
“It was good news that he hinted that November is off the table for a rate hike,” says Robert Pavlik, senior portfolio manager at Dakota Wealth.
“But it leaves open the possibility of an additional rate hike… the economy continues to advance and inflation remains high, so that’s what has the market in suspense“added the analyst.
Atlanta Fed President Raphael Bostic told CNBC that while inflation remains too high, it is declining amid growing evidence of an economic slowdown. and that could open the door to looser monetary policy towards the end of next year.
Wall Street: risk aversion
The yield of the 10-year Treasury bond, which briefly exceeded 5% on Thursday for the first time since July 2007, it stands at 4.9264%.
The Cboe volatility index, Also known as the Wall Street Fear Meteris approaching its highest level since March.
Consumer discretionary, energy and information technology lead the declines among the main sectors of the S&P 500while basic consumption and real estate are the ones that rose the most.
Source: Ambito
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