The floor of the New York Stock Exchange (GETTY IMAGES NORTH AMERICA/AFP/SPENCER PLATT)
The Dow Jones index widened its losses on Thursday, yielding more than 2% on the New York Stock Exchange following central bank rate hikes and poor US indicators.
Around 4:10 p.m. GMT, the index of star stocks dropped 2.03%, the Nasdaq, with strong technological coloring, lost 2.82% while the broader S&P 500 index fell by 2.31%.
“US equities don’t stand a chance today, having to digest a hawkish decision by the Fed’s monetary committee and a series of indicators that reinforce the argument that the economy is heading into a recession,” commented Edward. Moya analyst for Oanda.
The US Central Bank (Fed) hiked rates again on Wednesday and issued a bleaker forecast for the economy. The European Central Bank (ECB) and the Bank of England have done the same.
Although these 50 basis point rate hikes are smaller than the previous ones, the messages from the central bankers of the Fed and the ECB show their determination to continue to tighten the monetary screw in the face of persistent inflation.
At the same time, indicators in distribution but also in industrial and manufacturing production in the United States showed a marked slowdown which does not bode well for the progress of activity in general.
“The labor market may not collapse but it is becoming increasingly clear that the consumer is weakening, and manufacturing activity is in recession,” Moya said.
© 2022 AFP
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