The main indices of wall street fell on Tuesday, dragged by the technological values and others of growth, after comments from the governor of the Federal ReserveLael Brainard, scared investors of possible aggressive moves by the central bank to control inflation.
The nasdaqof great technological weight, fell sharply, with declines of heavyweights such as Apple Inc. and Amazon Inc..
At a conference Tuesday, Brainard said he expects methodical interest rate hikes and rapid drawdowns from the Fed’s asset portfolio to bring U.S. monetary policy to a “more neutral stance” later this year, with further hardening then as needed.
Brainard’s comments “have shown that the fed is willing to be more aggressive,” said Kristina Hooper, chief global markets strategist at Invesco.
“That is certainly having a negative effect on equities due to concerns that this will increase the likelihood of a recession,” Hooper said. “It’s going to get harder and harder for the Fed to engineer a soft landing the more aggressive it gets.”
The S&P 500 lost 57.52 points, or 1.26%, to 4,525.12 units, while the nasdaq it was down 328.38 points, or 2.26%, to 14,204.17. The Dow Jones Industrial Average it fell 280.70 points, or 0.80%, to 34,641.18 units.
US Treasury yields rose to multi-year highs after Brainard’s comments.
The perspective of a fed The more aggressive move made for a tough start to the year for equities, and in particular for technology and growth stocks, whose valuations will come under more pressure from rising bond yields.
The attention in fed it will continue on Wednesday, when the central bank publishes the minutes of its March meeting.
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