The New York Stock Exchange ended lower on Wednesday, impacted by the technology sector that received the results of Alphabet and Microsoftand because The Federal Reserve cooled expectations of a quick interest rate cut. In the month, however, two of the three main indices managed to close higher.
Thus, during January, the index Dow Jones gave up 0.8, the technological Nasdaq advanced 1.9% and the S&P 500 rose 1.7%. So, the New York plaza closes the month of January with slight monthly gains, the third in a row.
What the last day of January was like on Wall Street
Two of the seven magnificents”the gigantic capitalizations of the technology sector, Microsoft (-2.7%) and Alphabet (-7.4%) were under pressure for profit takings after publishing its results at the close of Tuesday.
“These companies’ losses were not due to poor results or forecasts,” explained Briefing.com’s Patrick O’Hare. “They were because expectations were extremely high and these titles had enormous profits before publishing” their results, he explained.
The actions of the fAMD microchip opener They also lost 2.5% due to the same profit-taking movement, despite better-than-expected billing and a profit in line with forecasts.
The rest of the group of leading technology companies also fell: Manzana (-1.9-%), amazon (-2.4%) and Goal (-2.5%) closed lower before releasing results on Thursday.
“The Fed added pressure on stocks”said Peter Cardillo of Spartan Capital. The US Federal Reserve kept its reference rates in the range of 5.25-5.50% this Wednesday, but noted that needs more “confidence” before starting an expected cycle of cuts.
Its managers indicated that will not begin to cut rates without “greater confidence” that inflation moves in a “sustainable” manner towards its long-term objective of 2% annually, while recognizing that there is a “better balance” of risks in terms of inflation and employment.
“We believe thatOur policy rate is probably at its peak for this tightening cycle and that, if the economy generally evolves as expected, it will surely be appropriate to begin easing the (monetary) tightening at some point this year,” central bank President Jerome told reporters at a post-meeting news conference. Powell.
But Powell “virtually assured that there will be no change in rates in March” as the market expected, and “that was a disappointment” for the operators, Cardillo said.
Among the values of the day, the media group Paramount (CBS, MTV, Paramount studio) gained 5.3% after a purchase offer from industry magnate Byron Allen for $14.3 billion.
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.