Wall Street suffered its greatest collapse in two months due to weak economic data

Wall Street fell abruptly on Friday, February 21 After knowing a series of more weak reports than expected, which fueled concerns about the progress of the economy. It was about Greater daily collapse in two months.

In this context the index Dow Jones Industriales dropped 1.7 % to 43,428.02 points; he S&P 500 lost 1.7% to 6,013.13 points and Nasdaq Composite depreciated 2.2% to 19,524.01 points.

Loose services data and harmed consumer confidence

The preliminary compound index of global S&P purchasing managers for the US to 49.7 from 52.9.

In addition to the weakest data of services, The trusted index of the University of Michigan showed that the confidence of the American consumer was further deterioratedfalling to a reading of 64.7 from 71.1 and below the forecasts of 64.8.

The quarterly profit season is coming to an end

Rivian Automotive Inc fell 4.9%since the electric vehicle manufacturer predicted a decrease in deliveries for next year, which eclipsed the results of the fourth quarter that overcome the estimates of the analysts.

Even so, some on Wall Street remained optimistic, citing optimism about the next launch of the Rivian R2, a fully electric medium -sized SUV.

Block Inc collapsed almost 18% After their results of the fourth quarter did not meet expectations in the midst of the growing competition for the payment system.

Nu Holdings Ltd., one of the world’s largest digital banks, collapsed 19%after publishing results of the fourth quarter that did not reach the estimates of the analysts. It was the greatest drop in shares since May 2022.

What happened to other Wall Street actions?

The actions of UnitedHealth Group fell 8% After a WSJ report where it was announced that the Justice Department opened a civil fraud investigation into the Medicare billing practices of UnitedHealth in recent months. In response to the report, the company described it as “misinformation”, emphasizing that the government routinely evaluates the plans associated with the program.

Celsius Holdings rose 26.5% After knowing that the energy drink manufacturer would notify that he is willing to acquire his rival Alani NU and report results of the fourth quarter better than expected. HEMS HERS HEALTH INC collapsed 24.1% When the Food and Medicines Administration (FDA) announced the shortage of diabetes medicine supply and the weight loss of Novo Nordisk.

The greatest increases and casualties of the wheel

Among the actions that were most appreciated appear Pony AI (+29%), Celsius (+26.5%), Vicor (+21.3%), Lenovo (+12.3%) and Tencent Music (+12.2%).

While the most resigned value found, Globant (-27.2%), Hims & Hers (-24.1%), Akamai Technologies, (-21%), Cargurus (-19.9%) and Glaukos (-17.9%)

Philip Jefferson Vice of the Fed vs artificial intelligence

The Artificial Intelligence (AI) is accelerating the speed with which investors react to specific content in the speeches of central bankers and their policy statements, according to Philip JeffersonVice President of the Federal Reserve. However, it is not yet clear if this speed increase is optimizing or hindering the effective transmission of monetary policy.

Jefferson, in his Friday speech, clarified that AI does not seem to be modifying the way in which political leaders are currently communicated, but investigations indicate that It influenced the speed with which information about policies is incorporated into assets prices.

He made these statements at a conference at the Fed of San Francisco, without offering any perspective about his opinions about the future of monetary policy or the US economy.

The vice president of the Federal Reserve stressed “the need for more research”, since this would help determine if the highest speed allows monetary policy to be transmitted faster through the economy. On the other hand, there is concern that investors can encourage investors to prioritize speed on precision.