The New York Stock Exchange concluded with a serious pullback on Tuesday, on its way to its worst month in a year, weighed down by a rise in bond rates which are preparing for an upcoming reduction in US Central Bank (Fed) support for the economy.
Based on close results, the Dow Jones index fell 1.6% to 34,299.99 points. The Nasdaq fell 2.8% to 14,546.68 points and the S&P 500 lost 2% to 4,352.63 points. In Toronto, the S & P / TSX Composite Index lost 1.4% to end the day with 20,174.14 points.
Yields on 10-year Treasuries stood at 1.54%, the highest figure in three months, from 1.48% the day before, after rising to 1.56% in the session.
Specter of an upcoming decrease in asset purchases by the Fed, deadlock around the debt ceiling, concern about the persistence of inflation: operators had multiple reasons for another volatile session on Wall Street.
Before a Senate committee, the head of the central bank, Jerome Powell, also did not hide Tuesday that inflation, caused in particular by the problems of industrial supplies after the pandemic, “was high and would probably remain so in the coming months ”. He continued to promise, however, that the price increase would then decelerate.
Nervousness
The saga in Congress around the debt ceiling also began to worry as Treasury Secretary Janet Yellen announced to the same committee that the United States would be short of resources on October 18 if it was not for the debt ceiling. not raised. She warned of the “disastrous” consequences of a never-before-seen US payment default.
On the macroeconomic front, a disappointing consumer confidence index added to the nervousness. US consumer sentiment, as measured by the Conference Board, fell again in September, hitting its lowest point since February, a sign of growing concerns about the pandemic, growth prospects and inflation risks.
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