©Reuters. Wall Street chains another week of losses with an eye on the Fed
New York, Apr 22 (.).- Wall Street experienced its worst day of the year this Friday and ended the week with losses in all its indicators due to the expectation that the US Federal Reserve (Fed) will continue to adjust aggressive monetary policy to tackle inflation.
He accumulated a weekly cut of 1.9%; the selective one of 2.8% and the one of 3.8%; and the European places also had decreases: Milan, 2.34%; London, 1.24%; Madrid, 0.54%; Frankfurt, 0.15%; and Paris, 0.12%.
International stock markets are preparing for interest rate hikes in the US and the eurozone, which many investors fear will hurt the growth of the global economy, already affected by the war in Ukraine and the sanctions on Russia.
In that sense, the president of the Fed, Jerome Powell, said this Thursday that the Fed is considering raising interest rates half a point at its next meeting on May 4 in order to control high inflation, which generated a strong movement in the public debt market.
The yield on US 5-year Treasury bonds touched 3% momentarily and exceeded that of papers maturing at 30 years, a reversal that analysts interpret as a lack of confidence in the economy and a possible sign of a recession.
The “increasing uncertainty” about the US economy in the coming months was reflected in the “Beige Book” published this week by the Fed, which nevertheless recorded “generally solid activity” between February and April, summed up in a analysis note Wells Fargo (NYSE:).
The quarterly results of the most important US listed companies also digested part of the movement on Wall Street, with great attention paid to the Netflix (NASDAQ:) content platform, the leader in the buoyant streaming sector, and which now generates Doubts.
Netflix plummeted 36% on Wednesday, more than 54,000 million capitalization, and has continued to lose value at a slower rate after reporting an unexpected loss of 200,000 subscribers, which led several financial institutions to lower their stock market attractiveness.
The most affected sectors of the week have been communications (-6%) and technology (-2%), while there have been slight gains in real estate (2.5%) and essential goods (2%).
As for the market of , the price of the Texas barrel is more than 4% cheaper this week due to weaker energy demand prospects for this year as a result of the war in Ukraine and monetary policy measures.
On the other hand, the cryptocurrency market was also not immune to the Fed’s plans and this Friday the , the most popular currency, lost the level of 40,000 dollars.