Wall Street closed in the red as central banks raise rates

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Wall Street closed in the red this Thursday and its lead indicator, the Dow Jones Industrials, fell 0.35% as more central banks raise interest rates to fight inflation.

(Wall Street closed by pulling down from the Fed rate hike).

At the close of trading on the New York Stock Exchange, The Dow Jones fell 107.10 points to 30,076.68 units, while the selective S&P 500 dropped 0.84%, or 31.94 integers, to 3,757.99.

For its part, the Nasdaq Market Composite Index, which brings together core technology companies, fell 1.37%, or 153.39 units, to 11,066.81 integers. Stocks have been hit by high inflation and moves by central banks to tighten financial conditions in response.

The US Federal Reserve (Fed) on Wednesday raised rates by another 0.75 points and indicated a further hike.

(Wall Street in green, while stocks in Europe closed mixed).

Central Bank Chairman Jerome Powell told a news conference that there is no painless way to control inflation. In addition, a long list of central banks made monetary policy decisions today, such as the Bank of England, which raised interest rates in the United Kingdom by 0.50 points.

Fed Office in Washington DC (United States).

EFE

The Swiss National Bank also raised its key policy rate to 0.5%, becoming the latest European central bank to exit negative rates. Meanwhile, the Bank of Japan kept its policy unchanged.

this thursday, FedEx shares rose 0.81% after the company took steps to save between $2.2 billion and $2.7 billion in fiscal year 2023.

Last week, FedEx shares were hammered by warnings of falling parcel volumes, information that ripped through the markets as a harbinger of another recession.

(How Fed rate hikes affect Colombia).

Meanwhile, energy stocks rose as oil prices rose on renewed concerns about Russia’s invasion of Ukraine.

Almost all corporate sectors led by real estate companies ended in losses Non-essential (-2.16%), Finance (-1.66%) and Industrial (-1.49%). Only energy (0.51%) and communication (0.06%) closed in green.

Losses in 30 Dow Jones stocks were also prominent, with American Express (-3.42%), Boeing (-2.09%) and Goldman Sachs (-2.89%) being most prominent.

(Savings and not borrowing, measures against rising inflation).

While at the end of the companies that ended in the green, Merck & Company (3.53%), Johnson & Johnson (1.78%) and Salesforce (1.71%) stood out. Texas crude closed near $ 83.49 per barrel in the oil market wall Street The 10-year US Treasury bond yield rose to 3.70%, gold rose to $1,680.30 an ounce and the dollar was trading at 0.9838 against the euro.

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