Live rollercoaster the NYSE

This Monday, the stock markets in Europe showed great nervousness and ended in negative territory, affected by the tension between Russia and Ukraine.

The main French stock index, CAC 40, led the declines on the European continent, with a 3.97% decline ending at 6,787.79 points, followed by the DAX, in Germany, which was 3.80 % fell and ended at 15011.13 integers.

In Spain, the IBEX 35 closed at 8 417.80 units, down 3.18%, the benchmark for England, FTSE 100, was placed at 7 297.15 points, yielding 2.63 per cent.

Wall Street has been nervous for most of the day about an increase in Fed interest rates as well. However, investors’ buying opportunities saved the market, which ended in profits.

In New York, star shares have fallen to their lowest levels in months, with Twitter and Paypal losing more than 7 percent. Graphics card maker Nvidia has dropped 10%, just like Shopify. Big names in technology like Apple, Amazon, Meta (formerly Facebook) and Microsoft lost more than 4% for much of the day.

“The decline is deepening. The markets are nervous. They wonder what the ultimate economic impact of the Fed’s interest rate hikes will be, at a time when they expect aggressive monetary tightening to fight sustained inflation,” analysts summed up. van Schwab.

Turn around

Wall Street turned around, after opening sharply lower on Monday, and managed to close higher after a black day the day before the Federal Reserve (Fed)’s monetary policy meeting began on Tuesday.

The Dow Jones index rose 0.29% to 34,364.50 points after losing as much as 3% during the day, while the tech-heavy NASDAQ Composite rose 0.63% to 13,855.13 points, after collapsing by 5% during the session.

In turn, the S&P 500 entered the correction zone with a drop of more than 11% in one month, but ended 0.28% positive on 4 410.13 integers.

Within an hour of closing, the indices changed their trend and rose again, a sign of the return of investors looking for good opportunities after six sessions of decline for the Dow Jones and a NASDAQ at an eight-month low.

By noon, Wall Street was facing the worst January yet, Schwab analysts noted.

“There was a fear that the Fed (at its Tuesday-Wednesday meeting) could raise its hammer rates by 50 basis points at some point,” said Mazen Issa, an analyst at TD Securities, to explain the range of sales.

The US Federal Reserve should announce the rate hike it plans to fight inflation this year. Although the Fed has indicated that it will go for three 25 basis point rate hikes in 2022, markets fear that this rate of monetary tightening will accelerate, and this worries Wall Street.

Uncertainty will follow

The uncertainty in the markets is a sign that geopolitical tensions are heating up, NATO has announced that it is putting forces on standby to prepare for a possible Russian invasion of Ukraine.

The threat of conflict in that region has helped push U.S. Treasury yields lower, halting their rise, which has put stocks under pressure in recent months.

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Reference-www.eleconomista.com.mx

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