Wall Street closed this Monday in red and its main indicator, the Dow Jones Industrials, fell 1.11%, placing it in the bear market or 20% below its last all-time high, in a day marked by the fall of the pound sterling and the strengthening of the dollar.
(Silicon Valley, before the beginning of a new era?).
At the close of trading on the New York Stock Exchange, the Dow Jones lost 329.60 points, to 29,260.81 and, according to the specialized page Market Watch, the bear market mark was at 29,439.72 points. While the selective S&P 500 left 1.03% or 38.19 units, up to 3,655.04, thus reaching its new closing low for 2022.
For its part, the composite index of the Nasdaq market, which brings together the main technology companies, fell 0.60% or 65 integers, up to 10,802.92. Monday’s declines reflect investor concern about the state of the world economy.
fear for one possible global recession became more palpable to investors after last week the United States Federal Reserve (Fed) raised interest rates by 75 basis points and moved to a range between 3% and 3.25%, the highest level in the last 14 years.
(Nubank will restructure its BDR program on the Brazilian Stock Exchange).
The Bank of England also raised UK interest rates by 0.50 percentage point to 2.25%, its highest level since December 2008. “My concern is that there is a sense that the Fed is going to raise rates until it breaks the economy, or until something breaks.”said Paul Donovan, chief economist at UBS Global Wealth Management in remarks collected by The Wall Street Journal.
Also, this Monday, the US dollar rose to a maximum not seen since 2002which does not favor US companies by making them less competitive.
For its part, the value of the pound collapsed this Monday against the dollar to its lowest level since 1971, after the Minister of Economy, Kwasi Kwarteng, hinted yesterday that he does not rule out introducing more tax cuts in addition to those announced last week.
(The Fed readies rate hike of 75 points in the United States).
Almost all sectors ended with losses, led by the companies of real estate (-2.62%), energy (-2.57%) and public services (-2.42%). Only essential goods closed in green (0.01%). The declines also predominated among the thirty values of the Dow Jones, highlighting the falls of Travelers (-3.14%), Boeing (-2.99%) and Chevron (-2.63%).
While at the end of the companies that ended in green, Walmart (0.96%) and Apple (0.23%) stood out. In the oil market, Texas crude closed at $76.71 a barrel and at the close of Wall Street, the yield on the 10-year US Treasury bond rose to 3.90%, gold fell to $1,633.70 a barrel. ounce and the dollar gained ground against the euro, with a change of 0.9613.
The main European stock markets closed this Monday with losses, with the exception of Milan, due to the rise in interest rates and the numerous factors of economic uncertainty. Paris lost 0.24%, Frankfurt 0.46%, Madrid 0.99% and London finished stable (+0.03%).
Milan closed instead with a gain of 0.67%, after the victory in the Italian legislative elections of the post-fascist Brothers of Italy party, a result that had been anticipated by the markets.
AFP
