After the United States stocks started 2022 setting records, this Monday they closed lower adding their fifth consecutive session with losses.
However, the NASDAQ Composite made a major rally towards the end of the trading session, as some investors appeared to be looking for bargains even as they were concerned about rising interest rates from the Federal Reserve (Fed).
In addition to rising U.S. Treasury yields, investors are also looking forward to this week’s inflation data and what it will mean for the Federal Reserve’s tightening of monetary policy, according to Peter Tuz, chairman of Chase Investment Counsel.
The analyst is also concerned about the impact of the latest coronavirus case numbers on the fourth-quarter earnings season that begins later this week.
With the NASDAQ Composite cutting its losses dramatically during the session, some investors showed up looking for bargains after the earlier sell-off, according to Rick Meckler, a partner at Cherry Lane Investments, a family investment office in New Vernon, NJ.
The S&P 500 lost 0.14%, to 4,670.29 units, while the Dow Jones Industrial Average fell 0.45%, to 36,068.87 integers. For its part, the NASDAQ Composite gained 0.05%, to 14,942.86 points.
Traders have raised their expectations for rate hikes since minutes from the Fed’s December meeting appeared to indicate an earlier-than-expected increase.
Goldman Sachs said it expects the US central bank to raise the benchmark interest rate at least four times during this 2022, compared to its previous forecast of three.
The electric car manufacturer Tesla fell earlier, but its shares recovered lost ground to rise at the end of the session and gain 3.03%, however, in the first week of January it fell 11.74 percent.
Rick Meckler said minority investors appeared to return to stocks for a bargain after Tesla Chief Executive Elon Musk tweeted on Friday that the electric car maker will raise the U.S. price of its advanced assistive software. to the driver.
Wall Street, without lifting
In the first week of 2022, the main indices in New York operated in negative territory.
NASDAQ leads the losses with a cumulative 5.62%; followed by the S&P 500 with a downward adjustment of 2.63% and the Dow Jones industrial average marking a bearish streak of 1.41 percent.
For its part, the US companies with the most falls this year are technology companies, with Tesla (-11.74) the one with the greatest loss. Netflix, meanwhile, has fallen 9.63% and Microsoft 6.13 percent. Apple and Amazon also fall more than 5%, each so far this year.
End to winning streak
The Mexican Stock Exchange (BMV) registered a moderate setback in the negotiations this Monday. The local stock market yielded and ended a four-session streak of consecutive advances, in a market that anticipates rises in interest rates in the United States earlier than planned.
The main stock index of the BMV, the S & P / BMV IPC, closed the day with a loss of 0.69% at a level of 52,835.76 units.
For its part, the FTSE BIVA index, the main index of the Institutional Stock Exchange (Biva), fell 0.76% to the level of 1,091.54 points.
Within the S & P / BMV IPC, most of the components ended the day in negative territory, with 23 values in red and 12 in green.
The losses were led by Cemex shares, with a 2.17% drop; industrial Alfa, with a loss of 1.86%; the world’s largest bakery Grupo Bimbo, falling 1.78%, and the administrator and operator of toll roads, Pinfra, with a loss of 1.50 percent.
The Federal Reserve mentioned in its minutes last week that it is possible that it will raise interest rates earlier than expected to respond to inflation, with a “very tight” labor market. Investors have also shown concern about the advancement of the new Covid-19 variant Omicron. (With information from José Rivera).