Analysts say there is concern among investors that it could be a rough year for tech stocks, which benefited the most from low interest rates.
Wall Street on Thursday extended its negative performance after yesterday’s session. The main US stock indicators resumed a downward trajectory in their first trades, and despite attempting a rally during the day, they eventually ended in the red.
Thus, the Dow Jones led the falls with a decline of 0.47%, while the S&P 500 and the Nasdaq lost 0.10% and 0.13%, respectively.
The Nasdaq was the one that had suffered the most yesterday, with a fall of 3.34%, its worst day since February 2021, while the 11 sectors of the S&P 500 closed on Wednesday with numbers in the red.
Well Fargo attributed the volatility on Wall Street to investors weighing the latest economic data and assessing the likely trajectory of monetary policy. after the publication of the minutes of the December Federal Reserve meeting.
The publication included some harsh conclusions and the authorities are considering a rate hike “earlier or at a faster pace than originally anticipated.”
Analysts indicate that there is concern among investors that it could be a rough year for tech stocks, considering that they were the big winners during the pandemic, benefiting from low interest rates, as well as the boost from the economy. home office of millions of workers who boosted their sales.
For their part, 10-year US Treasury yields are on track to rise for the fourth day in a row.
Analysts say this reflects investors’ conviction that the omicron variant will not prevent the Fed from tightening its monetary policy to control inflation. The yield on the 10-year Treasury bond rose to 1.74% from 1.70% yesterday. This level was not seen by the market since March of last year.
Panorama in Chile
The S&P IPSA did not follow the trend of its international peers and the national selective rose 0.71% to reach 4,348.44 points.
The roles that led the climb were SMU with an advance of 5.53% together with Sonda and ECL that increased 3.81% and 3.06%, respectively.
On the other side of the coin, the most traded securities that were punished by local investors were CAP, which fell 3.57% and AES Andes, which lost 3.30%.
In a morning report, Renta 4 recalled that “we must bear in mind that the President-elect, Gabriel Boric, should announce his cabinet by January 20, where the appointment of the Minister of Finance will be very relevant.”
Scenario in Europe and Asia
The European market also suffered from the Fed’s course. The regional Euro Stoxx 50 fell 1.53%, the London FTSE 100 fell 0.88%, the Frankfurt DAX lost 1.35%, the Paris CAC 40 fell 1 , 72% and the IBEX 35 of Madrid fell 0.01%.
Stocks in Asia were not immune either and ended the day lower after the Fed minutes were released. Tokyo’s Nikkei fell 2.88% and mainland China’s CSI 300 fell 1.02%. The exception was Hong Kong’s Hang Seng, which rose 0.72%.
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