Wall Street falls; investors weigh Fed comments


May 5, 2022 | 8:59 a.m.

The wall street indices fall after marking three days with gains, with the technology stocks leading the loss, as investors weighed the implications of tightening the monetary politics more aggressive from the fed in more than two decades.

At 8:40 am (Mexico City time), the S&P 500 down 1.07%, to 4,254.08 units. The Dow Jones Industrial Average falls 0.89%, to 33,756.77 units; Meanwhile he Nasdaq Composite loses 1.78%, to 12,733.67 units.

In Mexico the Index of Prices and Quotations (CPI) of the Mexican stock exchange (BMV) falls 0.50%, to 51,186.56 points.

On the foreign side, the Stoxx Europe 600 pancontinental rises 0.7%. Banks, technology stocks and transportation companies were among those that rallied.

the italian bank UniCredit up 5.3%. Airbus jump 7.3%. shell earn 4.2%. While in Asia, the Hang Seng Hong Kong fell 0.4% and the Shanghai Composite it rose 0.7%. Markets in Japan were closed for a holiday.

On the other hand, in the bond marketthe benchmark 10-year Treasury bond yield hit 3.007%, from 2.914% on Wednesday.

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Wall Street retreats after the Fed’s movements

The pullback came a day after Wall Street’s major stock indices soared, with the S&P 500 and Dow Jones posting lower higher profit in one day from 2020.

On Wednesday, central bank officials approved a half percentage point interest rate hike, raising the funds rate to a target range between 0.75% and 1%.

The comments of the Fed chairman, Jerome Powellbuoyed markets on Wednesday, after he said officials were not actively considering raising rates by three-quarters of a percentage point, or 75 basis points, at their June meeting.

However, this Thursday, investor optimism began to wane. Even with a further increase in interest rate off the table in the coming months, officials still face the most aggressive tightening of US monetary policy since 2000, the last time the central bank raised rates by half a point.

stocks fall

Growth stocks were particularly hard hit. chip makers Advanced Micro Devices, Nvidia Y NXP Semiconductors each lost 2%. technology stocks megacap also backed down, Goal losing 2.6% and Netflix 23%.

Contrary to the trend, shares of Twitter rise 2.9%, after the CEO of Tesla, Elon Musksaid that he had received letters from investors committing more than $7 billion in new financing to leverage the equity portion of its offer to buy the social enterprise.

Booking Holdings jump 7.7% and Etsy falls 14%. The actions of Wayfair Y Shopify they lose 16% each.

On the other hand, in the raw materials market, oil prices operate on the rise, after the OPEC+ ratified a limited increase in production after the ban on the proposal by the European Union to Russian imports.

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