On Another Red Day For Wall Street, Argentine Stocks Fall More Than 7%

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On Another Red Day For Wall Street, Argentine Stocks Fall More Than 7%

The market fears a recession in the US economy

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Wall Street opened this Thursday in red and the Dow Jones Industrials fell a hefty 2.46 %, with investors digesting the 0.75 percentage point interest rate hike announced Wednesday by the US Federal Reserve (Fed) to fight inflationand which many fear will push the economy down a recession

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Ten minutes after the opening, the Dow Jones lost 754.57 points, breaking below the 30,000 barrier, at 29,913.96, while the selective S&P 500 lost 3.2%. The composite index of the Nasdaq market, where the main technology companies are listed, also suffers a sharp decline of 3.12%.

The announcement by Fed chairman Jerome Powell initially spurred the three indices, but they gradually lost strength, even as they ended the day on a positive note, only to collapse this Thursday for fear of a recession.

In that context, Argentine ADRs drop to 7.4%, in the case of Mercado Libre, which suffers the same fate as the rest of the global tech companies. The malaise is reflected in the local stock market and the S&P index Merval loses 1.7% from the opening.

Meanwhile, dollar bonds continue to hit new lows and country risk dropped a slight 0.1% to 2.107 points.

Fear in global markets

“I think there is an understanding that we may indeed be heading into a recession. I’m not sure if it has really filtered into the mind of the market so far,” said Altaf Kassam of State Street Global Advisors. Wall Street Newspaper.

Powell pointed out during his presentation that another 0.5 or 0.75 point rate hike is likely at the Fed meeting in July, despite clarifying that the announced hike. it is “unusually tall”.

The worst performing Dow Jones companies were American Express (-4.53%), Dow (-4.04%), Caterpillar (-3.78%) and Apple (-3.43%).

In other markets, Texas oil fell to $ 114.08 a barrel, the 10-year US Treasury yield rose 3.43%, gold gained value at $ 1,830.30 an ounce, and the dollar lost ground against the euro, with a change of 1.046.

NEITHER

Source: Clarin

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