Traders on the New York Stock Exchange
Wall Street closed this Friday its worst week in monthsmainly due to rising inflation in the US and fears of a recession.
In the accumulated weekly, the Dow Jones Industrialists cut 4.58%; the selective S&P 500 fell 5.05% and the index nasdaq it sank by 5.60%.
Investors bet on purchases earlier in the week, but then got nervous over the release of the US Consumer Price Index this Friday.
The inflation rate in the country rose to 8.6% in May, three tenths above that of April and the highest in the last 41 years, mainly due to the sharp rise in energy prices.
This new escalation makes it more likely a new hike in interest rates by the Federal Reserve is already expected by half a point (Fed), which meets next week.
“Most thought inflation peaked a couple of months ago, and the fact that it has risen means there is a readjustment, including the Fed,” John Madziyire, portfolio manager of John Madziyire, told The Wall Street Journal. Vanguard.
As a result, the debt market moved sharply, with the 2-year Treasury bond yield exceeding 3% for the first time since 2008.
On the other hand, analysts today reported deteriorating consumer confidence in the US, which would be at an unprecedented low for June, according to preliminary readings.
“The financial situation of consumers has deteriorated by 20% and that does not bode well for consumer spending,” said Oanda analyst Edward Moya.
Among the sectors most affected by the rate hike and the potential recession are technology and non-essential goods, which have lost nearly 5% in value.
Massive share sales have affected some large tech companies, such as Amazon, which have lost more than 10% accumulated; Meta (-8%) or Microsoft (-6.3%).
Instead, the energy sector was the only one in green this week, up about 2%.
In the oil market, a barrel of Texan crude remained virtually unchanged due to the strengthening of the dollar against other currencies, but it is already above the psychological barrier of 120 dollars.
Source: Clarin
