Wall Street deepens the decline after the Fed’s announcement

All three major US stock market indices fell Thursday morning. Wall Street deepens its losses due to fears of a possible recession caused by a long period of high interest rates to control persistent inflation.

main index Dow Jonesof 30 industrial giants, falls a marginal 0.07% to the level of 32,124.23 units, and the benchmark extended S&P 500, of 500 components, yields 0.61% to the level of 3,736.94 units. The Nasdaq technological yields 1.03% to 10,416.14 units.

Shares fell under pressure after the announcement of an increase of 75 basis points to the key rate and that the subsequent communication reported a moderation of the next hikes, as well as the possibility that this period of high rates could be prolonged.

“Of particular importance is that the maximum level of the rate will be higher than expected. The Fed had projected a level of 4.6% that left room for a more moderate hike in December. Now the way is open for a greater movement” eToro explained.

In economic numbers, it was reported this morning that the number of Americans filing new claims for jobless benefits unexpectedly fell last week, further evidence of the strength of the labor market.

Within the Dow Jones 17 index, the components are painted red and, once again, technology companies are among the worst performing stocks. The actions of Apple stand out with a drop of 3.36%, while Microsoft loses 1.29 percent.

jose.rivera@eleconomista.mx