Wall Street continues to be in the red after two recessions-April 7, 2022 17:21



The New York Stock Exchange Thursday after two losses and a signal that the US central bank (Federal Reserve Board, Federal Reserve Board) is preparing to act more aggressively against inflation. It fluctuated in the red again.

At around 3:15 pm Greenwich Mean Time, the Dow Jones fell 0.64%, the Nasdaq fell 0.59%, and the broader S & P 500 Index fell 0.15%.

On Wednesday, Wall Street responded uneasily to the Fed’s plans detailed in the minutes of the previous meeting to raise interest rates more quickly and unload the balance sheet as needed.

The Dow Jones fell 0.42% to 34,496.51 points, the Nasdaq fell 2.22% to 13,888.82 points, and the S & P 500 fell 0.97% to 4,481.15 points.

In the minutes of the last financial conference released Wednesday, members of the Fed’s Financial Committee (FOMC) could justify one or more rate hikes of 0.5 percent points to combat rising inflation. Showed that there is.

They also plan to begin shrinking their FRB balance sheets as early as May, reaching $ 95 billion per month within three months. This includes $ 60 billion in Treasury securities and $ 35 billion in mortgage-backed securities.

“At first, we weren’t sure how the market would capture everything,” said Shaun Osborne, chief strategist at Scotiabank.

“The interest rate signal wasn’t unexpected, but it was hawkish, and balance sheet reduction measures were important, but they weren’t in step with expectations,” he said.

Bond yields continue to grow, with 10-year Treasury yields rising to 2.64%, the highest in about three years.

“The stock market, like the bond market, seems to be struggling to figure out the future and how it will be affected by the Fed’s stricter thinking,” said Patrick O’Hare, a briefing.

James Bullard, Governor of St. Louis, Missouri, said in a speech Thursday that the Fed “delayed the turn” and that the Fed’s current level is “300 basis points too low” (3 percent). point).

The voter, who voted against the first 0.25% rate hike in March, felt it was too low and believes the rate should rise to 3.50%.

In terms of rating, HP rose 16.20% to $ 40.56 after the announcement of Berkshire Hathaway’s stock. Warren Buffett’s holding company has acquired 11.4% of the capital of computer and printer manufacturers.

A billionaire investment fund has invested $ 4.2 billion worth of shares in HP in several transactions this week, according to a document filed with the US financial market regulator SEC.

Tesla was launched on Thursday with a big fanfare and had a mega party, a mega factory, in Austin, Texas, the fifth in the group. Following the tech plunge, the title rebounded 2.59% after losing more than 4% the day before.

Following negative feedback from Deutsche Bank, pharmacy and drugstore chain Rite Aid fell by more than 21% to $ 6.66.

CDK Global, a provider of technology services and software to car dealerships, has agreed to acquire Brookfield Business Partners in a $ 8.3 billion deal.

The title CDK surged 11.27% to $ 54.51.

The war in Ukraine remains “a source of great uncertainty for the market, the United States has announced new sanctions against Russia, and the European Union is considering new sanctions,” Schwab analysts emphasized.