Wall Street indices are painted red for fears of a recession

The three main stock indices of Wall Street They fell on Tuesday, dragged down by shares of Meta and banks, as investors remain nervous about the rate hike cycle that drags on despite the possibility of a recession.

Meta (Facebook parent) fell 5.8% and dragged the S&P 500 y al Nasdaq after learning of a ruling from the European Union that will force Facebook and Instagram not to require users to accept personalized ads based on their digital activities.

On the other hand, Bank of America it falls 2.9% and leads the falls in the financial sector after the executive president of this entity stated, according to reports, that the bank’s studies forecast three quarters of slightly negative growth next year.

The person in charge of JPMorgan Chase and Co CEO Jamie Dimon also warned that a mild to steeper recession was ahead. His action is torn between red and green. At the time of this writing, it was earning a modest 0.14 percent.

The index S&P 500 of 500 components fell 1.17% to 3,951.94 units, while the Nasdaq, with a high technological component, fell 1.54% to 11,066.62 units. the main index Dow Joneswith 30 industrial giants, falls 0.74% to 33,694.48 units.

Bets are on the US central bank to raise interest rates 50 basis points at its December 13-14 policy meeting, with rates expected to peak at 4.995% in May next year.

As recently as Wednesday, the market was buoyed by information about the dovishness of the Fed’s rate hikes. Positive figures published yesterday and Friday returned fears to operations, given the possibility that it would complicate the central bank’s plan.

“Markets continue to be rocked by the US ISM services, which rebounded to 56.5 points, denoting unexpected strength, given the Federal Reserve’s tightening monetary policy. Good news becomes risk,” eToro explained.

jose.rivera@eleconomista.mx