Wall Street responds with losses due to Fed rate hike

Wall Street Weekly losses are recorded in its major indices after a 75 basis point rise in interest rates by the US Federal Reserve (Fed) and She is afraid to continue her aggressive policyIn light of the high rates of inflation and the strength of the labor market. According to provisional data at the bell ringing on the New York Stock Exchange, the hardest hit is the Nasdaq Composite Index, which leaves 5.7% and stands at about 10,475 points, with notable weekly declines in tech giants manzana (-11.15%), Amazon (-12%), Microsoft (-6.14%) and Tesla (-9.21%).

To a lesser extent, the selective S&P 500 Index, which is down 3.35% weekly, is down about 3,770 units, and the Dow Jones Industrial Index, which is down by one 1.4% and stands at about 32,403 integers. The event of the week was the Federal Reserve’s decision to raise interest rates for the sixth time in a row up to 3.75% and 4% rangethe highest level in the last 15 years, followed by comments from its boss, Jerome Powellabout future prospects. Powell noted that there is still a way to go Round due to high inflation (8.2%), although it opened the door to the possibility of a rate hike cut at the next or next meeting, and highlighted the strength of the labor market and moderate but stable consumer demand.

In terms of macroeconomic data, the October report on the labor market was the focus, reflecting a rebound in the unemployment rate to 3.7% and a. The slowdown in creating new jobs, up to 261,000, leading to a split due to its effects on monetary policy. All this led to significant moves in the debt market, as the 10-year Treasury yield started the week 4% but ends above 4.17%That particularly affected the big tech companies.

At the corporate level, entrepreneur Elon Musk has reached Twitter after buying the social network for 44 thousand million Of dollars, which means his exit from the stock exchange, and his first actions: firing several employees and proposing a monthly payment for verified accounts, as the money magnate today admitted to a “tremendous drop in income” due to the scramble of advertisers. In other markets, Texas oil has This week it was revalued by 4.8% to $92.61driven by the possibility that China, the world’s largest oil consumer, will ease its restrictions to control Covid-19, and to a lesser extent by a weekly decline in US trade reserves.