Wall Street closes mixed, BMV ends with gains

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May 12, 2022 | 4:10 p.m.

indices wall street and the Mexican stock exchange (BMV) closed mixed this Thursday amid the volatility and uncertainty that the United States Federal Reserve (Fed) hinder growth in its effort to control inflation with strict policies.

ANDl S&P 500 it fell 0.13% to settle at 3930.08 units; the Industry Average dow jones it fell 0.33%, to settle at 103.81 units.

Meanwhile he Nasdaq Composite it advanced 0.06% and stood at 11370.96 points.

In Mexico, the Index of Prices and Quotations (IPC) of the Mexican Stock Exchange (BMV) ended the day with a gain of 0.07% to settle at 49,309.32 points, marking three days higher according to investing.com.

Stocks have been under pressure due to concerns about the withdrawal of the Fed’s accommodative monetary policies as it battles the recent bout of high inflation.

The consumer prices rose in April at a slower pace than the previous month but still faster than economists expected, data released on Wednesday showed.

That fueled more concerns that the US central bank will raise interest rates at an aggressive pace and crush growth, weighing on markets that had grown accustomed to loose monetary policy.

Tech stocks, especially, flourished in the age of ultra-low interest rates and plunged sharply, with the Nasdaq Composite trading at its lowest level since November 2020.

“They (tech investors) found themselves at the most vulnerable time, the furthest from the precipice, so now they’re backing off the precipice and trying to get to more solid ground, and they’re changing their risk profiles.” said Dan Genter, chief executive officer and chief investment officer of Genter Capital Management.

The manager advised investors to take advantage of recent market declines, which have made stocks more affordable.

“Markets, on the sidelines, have shifted their probability towards a hard landing and further Fed tightening,” said Karim Chedid, investment strategist at BlackRock.

He explained that the drop in longer-dated bond yields suggests that growth expectations have fallen.

Abroad, the Stoxx Europe 600 fell 0.7%. In Asia, most major benchmarks fell, the index Hang Seng Hong Kong fell 2.2% and the Nikkei 225 of Japan fell 1.8%.

Oil prices closed higher Thursday despite insistent pressure from Europe to reach an agreement to sanction Russian crude, an improvement in China’s containment of COVID-19 and a stock market that outperformed a stronger-than-expected rise. expected relative to inflation in the United States.

It may interest you: BMV and Wall Street fall to their lowest level so far in 2022

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