Wall Street is lower and more nervous prior to the hearing of the Federal Reserve Chairman-June 22, 2022 16:13

Wall Street in New York (AFP / Angela Weiss)

Wall Street in New York (AFP / Angela Weiss)

The New York Stock Exchange fell on Wednesday, again worried about widespread economic slowdown and turmoil ahead of the chairman of the US Central Bank (FRB) before the US Congress.

At around 2:05 pm Greenwich Mean Time, the Dow Jones lost 0.70%, the Nasdaq Index with a strong technical structure lost 0.08%, and the broader S & P 500 Index lost 0.49%.

After a sunny session on Tuesday, the index returned to the deficit, saying, “A turnaround that seems to be related to fundamental concerns about growth prospects, yesterday set aside in favor of a technological recovery.” Patrick commented in a memo. O’Hare on Briefing.com.

Therefore, most of the risk aversion barometers, from the VIX Volatility Index to the price of sovereign debt, rose at the beginning of the session.

Yields on 10-year Treasuries plummeted from 3.28% the day before to 3.12%, with bond rates moving in the opposite direction of prices.

The US Senate Banking Commission is in the spotlight, before which Federal Reserve Chair Jerome Powell holds a hearing at 3:30 pm Greenwich Mean Time. Officials will also be heard tomorrow by the Finance Committee of the House of Representatives.

“I know what he’s trying to say. He’s trying to make it look like he’s fighting inflation,” said Gregory Volocain of Meshat Financial Services.

“He is responsible for the national representative. He cannot be said to have prevented inflation, so he must give a very tough speech in the fight against inflation,” the manager continued. “And obviously, that’s not what the market wants to hear.”

“Inflationary pressures have forced central banks to tighten monetary policy, fueling inflationary concerns, and lacking belief in equities,” said Schwab analysts.

The latest central banks to tighten the screws, the Czech National Bank and the Central Bank of Iceland, raised their major interest rates on Wednesday by 1.25 percentage points (up to 7%) and 1 point (up to 4.75%), respectively.

“Members of the (senator’s) committee will riddle with questions about how the Fed’s chair is trying to curb inflation without overturning the economy,” Patrick O’Hare predicted. “At this point, the market is far from being able to do that.”

“Tightening fiscal conditions (…) should continue to slow growth and help improve the balance between supply and demand,” Jerome Powell said in his opening remarks Wednesday.

“We expect unemployment to rise to 4.1% within two years, but that’s not enough,” the Federal Reserve estimates, to bring inflation closer to its target of 2%. doing. “And when what he’s trying to do is going to help destroy the job, how can he say he’s still fighting full employment? But he has no choice. . ”

From ExxonMobil (-3.16%) to Marathon Oil (-5.74%), Wednesday’s oil inventories were relaxed to match the price of black gold. Stormy weather, commonly blown on all raw materials, also affected the mining industry Freeport-McMoran (-7.33%) or the steelmaker US Steel (-2.70%).

Tobacco company Altria plunged (-8.88% to $ 41.64) after the government’s decision to lower nicotine levels in cigarettes sold in the United States was announced, experts said.

Another blow to the group in Richmond, Virginia, an American agency that specifically regulates the marketing of tobacco and related products, is the Juul product, an e-cigarette giant in which Altria owns 35% of the capital. I am preparing to ban the sale of.

Lebron continued his wild ride (+ 42.41% to $ 8.63). After 73% melted after the initial release of information related to bankruptcy filings made on Thursday, the cosmetics group saw more than five times the value of titles, especially boosted by the influx of private investors. Guess about the action.