Wednesday, August 18, 2021
Investors are lurking for Fed aid
Wall Street slowed by economic worries
The spread of the delta variant is weighing on the US stock exchanges. Most of the signs are red. The Fed minutes, according to which the central bankers are discussing an end to economic aid more and more intensively, also depressed prices.
Resurrected economic worries have slowed the US stock exchanges. the Dow Jones Index the standard value dropped 1.1 percent to 34,961 points. The broader one S&P 500 also lost 1.1 percent to 4400 meters. The index of the technology exchange Nasdaq lost 1.0 percent to 14,858 points. Many investors had been waiting for the minutes of the recent Fed meeting, which were released later in the day. In addition, the spread of the delta variant weighed on the mood in the markets. According to US Federal Reserve Chairman Jerome Powell, it is unclear whether the rising number of corona infections will have a significant impact on the economic recovery.
The pandemic is still casting a shadow over economic activity, said the Fed chief. It is true that one cannot yet proclaim a victory against the virus. However, many companies have adapted their business models to the new world.
Stocks in sectors that will benefit greatly from an upturn in economic activity have come under pressure. The shares of the agricultural machinery manufacturer Deere yielded 0.9 percent. Title by Caterpillar also lost almost one percent. The shares of the conglomerate 3M lost 1.2 percent.
Title of the home improvement retailer Lowe’s Cos jumped, however, by more than ten percent. The company had promised annual sales that exceeded analysts’ estimates.
Wall Street responded to news that the US Federal Reserve is likely to soon begin scaling back its support for the domestic economy with sharper losses. The majority of central bankers consider it appropriate, under certain conditions, to start gradually reducing monthly bond purchases as early as this year, according to the minutes of the latest Fed meeting.
However, this message was not unexpected. At the beginning of the week, the Wall Street Journal reported that the Fed officials had agreed to start tapering bond purchases in around three months. Many investors are likely to have seen the Fed minutes as an opportunity to take profits after the Dow Jones Index and S&P 500 set new record highs at the beginning of the week.