New York Stock Exchange Operator (GETTY IMAGES NORTH AMERICA / SPENCER PLATT)
The New York Stock Exchange closed on Friday, splitting and Dow Jones remained affected by the monetary tightening announced by the FRB, while Dow Jones could not end in a positive stance.
According to the final closing price, the Dow Jones Index rose 0.40% to 34,721.12 points. Technology-dominated Nasdaq fell 1.34% to 13,711 points and the S & P 500 fell 0.27% to 4,488.28 points.
In a week, the three indices were in the red, down almost 4% on the Nasdaq, 1.13% on the S & P 500 and 0.28% on the Dow Jones.
“US stocks ended the day mixed, but the first week of the new quarter ended weekly,” said Schwab analysts.
“Anxiety and anxiety appear to dominate the relatively quiet session as investors continue to consider the potential impact of the highly aggressive Fed’s monetary tightening cycle. It looked like, “they added.
Analysts at Wells Fargo pointed out that serious monetary tightening prospects in the United States, continued conflicts in Ukraine, and a Covid-19-related blockade in China continue to cloud the economic outlook.
In addition to inflationary concerns, the Food and Agriculture Organization of the United Nations (FAO) has revealed that commodity prices rose nearly 13% in March, hitting record highs.
“Overall, this rapid monetary tightening is not expected to put the US economy in recession,” said Paul Ashworth of Capital Economics.
“But if the fiscal situation tightens more sharply due to borrowing costs and the surge in the dollar, a mild recession will no longer be a problem,” he added.
This crucial move by the Fed, confirmed by several statements by members of the Financial Commission, has put a significant strain on the bond market.
Yields on Treasury securities for 10 years continued to rise on Friday, reaching 2.70% compared to 2.65% the day before. This was the best in over three years long before the Covid-19 pandemic.
The dollar rose to its highest level in a month, compared to the euro, which fell to $ 1.0874 at 1 euro (-0.05%) around 8:30 pm Greenwich Mean Time.
“Wall Street rises as bond yields accelerate and the value of bonds declines, and investors trade tech stocks for more defensive cards such as energy, banks, healthcare and raw materials,” said Edward Moya of Oanda. I did. ”
In the stock market, Tesla has lost $ 3% to $ 1,025, and Elon Musk, who recently acquired just over 9% of Twitter’s capital and became the largest shareholder, will soon have a question-and-answer session with social network employees. session.
After Mr. Musk joined the board, several Twitter employees expressed concern, especially the billionaire values, which did not match the corporate culture of social networks, according to the Washington Post.
Twitter fell 3.75% to $ 46.23. Amazon lost 2.11% and Google (Alphabet) lost 1.80%.
Semiconductor makers’ share, which has skyrocketed in recent months due to supply chain issues, has been hit after negative analysts’ views. Nvidia was down 4.50%, AMD was down 2.62%, and Micron Technology was down 1.42%.
Robin Hood, a popular online securities app, plunged 6.88% to $ 11.24 following a Goldman Sachs downbeat rating. The company was launched less than a year ago in August 2021 for $ 38.
Boeing held down Dow Jones as its share price lost its highs (-1.56% to $ 175.20) following the news that the Boeing 757, a freighter, split into two when it landed in Costa Rica.