The New York Stock Exchange was unable to maintain its rebound this Thursday and closed with a sharp drop, dragged down again by the technology sector, while investors assimilated new data on employment and inflation.
The NASDAQ Composite index, which concentrates the shares of technology companies, fell sharply 2.51% yesterday, to end at 14,801.81 points.
For its part, the Dow Jones Industrial Average fell 0.49% to 36,113.27 integers, while the benchmark S&P 500 lost 1.42% to 4,659.23 points.
Specialists indicated that the indices on Wall Street closed lower on Thursday due to investors taking profits, particularly in technology stocks, after a three-day rally.
Meanwhile, several US Federal Reserve (Fed) officials spoke about inflation and interest rate hikes.
Those in charge of monetary policy in the United States spoke of combating the inflation that exists in that nation and it will be through an increase in interest rates.
Even as 10-year Treasury yields fell, investors took profits on NASDAQ stocks, according to Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.
“We had a pretty nice rally on the NASDAQ in the last couple of days, so there could be some lingering nervousness around Fed rates and some profit taking, especially ahead of the quarterly results,” he said.
The crash sent the tech sector reeling again, including big names like Amazon which fell 2.42% to $3,224.28, Apple fell 1.90% to $172.19, Facebook fell 2.03% to $326.48 a share, Netflix fell 3.35% to $519.20 and Tesla fell 6.75%, in conjunction with chip producers.
high inflation
Investors assimilated during the day “mixed economic data that showed that, although producer prices moderated more than expected month on month (+0.2%), they remained very high year on year (+9.7%)”, they highlighted. Schwab analysts.
In addition, jobless claims unexpectedly increased for the second week in a row, likely due to the impact of the festering spread of the Omicron variant of the coronavirus, although jobless claims remain on a downward trend.
This slight rise shows that the labor market remains tight, a factor that could still weigh on inflation going forward and that put investors off guard over the Fed’s announcement to raise rates in three months.
Yesterday, chipmaker AMD had a cap value loss of $5.712 million, Netflix 7.982 million, Nvidia down $35.6 billion, Tesla lost $74.974 million in cap value, Microsoft down $101.133 million , which makes a setback of these companies of 225,406 million dollars in their market value.
Mexican bags with few changes
The Mexican peso and the Stock Exchange showed marginal changes on Thursday after a day without direction, while investors prepare for an expected start of a cycle of interest rate hikes in the United States.
Federal Reserve Vice Chairman Richard Clarida said in a document released Thursday that beginning to normalize monetary policy this year would be “fully consistent” with the central bank’s new average inflation targeting framework.
The peso ended the day at a level of 20.3133 units per dollar, this is a slight appreciation of 0.21% or 4.37 cents.
Investors are also attentive to news related to the rapid spread of the Omicron variant of the coronavirus and its potential impact on the recovery of the global economy.
The main index of the Mexican Stock Exchange (BMV), the S&P/BMV IPC, fell 0.04% to 53,930.45 points, although earlier it advanced to 54,102.49 units, a new intraday all-time high.
For its part, the FTSE-BIVA, the main index of the Institutional Stock Exchange (Biva) was at the same level as on Wednesday, that is, at 1,114.72 units.
The stocks that fell the most in the S&P/BMV IPC of the BMV were Grupo Elektra (-5.29%), followed by Pinfra (-3.68%), Banco del Bajío (-2.27%) and Grupo Bolsa (-1.97%).
For its part, the largest increases within the index were for the departmental Liverpool (3.32%), Grupo Televisa (1.52%) and Grupo Financiero Banorte (1.45%).
Reference-www.eleconomista.com.mx