The Wall Street stock market had its worst crash in more than two years

The New York Stock Exchange had its worst session since 2020 on Thursday, with investors reversing the rebound the previous day after re -reading the Fed’s announcements on Wednesday.

The Nasdaq index registered third largest loss of points in its historyafter two black sessions on March 12 and 16, 2020at the onset of a coronavirus pandemic.

The Nasdaq, with a strong technological tint, lost 4.99% to 12,317.69 points, while the industrial index Dow Jones yields 3.12% at 32,997.97 points and the S&P 500 composite index, fell 3.56% to 4,146.87 units.

“We had one of the best sessions yesterday and one of the worst today”directed by Angelo Kourkafas, of the Edward Jones firm.

After Wednesday’s enthusiasm in comments from Federal Reserve (Fed) Chairman Jerome Powell who ruled out a more dramatic tightening of monetary policy and a 0.75% increase at its next meeting scheduled for June, the market recovered your senses on Thursday.

“The fact that (the Fed) has ruled out a 0.75 percent increase point doesn’t really change the fact that the economy has slowed down and the Fed will tighten monetary policy at a high rate,” Kourkafas said.

“People started to think a little more about the Fed and its communication and they realize that things are not going to get betterr, ”said Maris Ogg of Tower Bridge Advisors.

For him, Thursday’s losses were also explained by the profit-taking that followed the rally the previous day, as well as rising bond market yields.

The 10-year US bond yield rose above 3.10% for the first time since November 2018.

As usual, the first to be hurt by investors was technology and growth stocks, which now weigh more on Wall Street.

Strongly losing to Apple (-5.57%), Microsoft (-4.36%), Tesla (-8.33%) or Amazon (-7.56%). Amazon has accumulated a retreat of more than 20% since the results were published last week and erased more than $ 280 million in market capitalization.

“The market will continue to be volatile and saw-toothed until we have confirmation that inflationary pressures have subsided and with them bond rates,” Kourkafas estimates.

Source of AP

LM