NEW YORK (Agefi-Dow Jones)–Wall Street is deepening its decline Monday in session, after the rise of geopolitical tensions in Ukraine and the approach of the monetary policy meeting of the Fed.
The S&P 500 lost 3.7% at mid-session, at 4,234 points, and is now in correction territory after losing more than 10% since its previous high. The index has lost ground over the past three weeks and last week suffered its biggest decline since March 2020.
The Nasdaq Composite fell for its part by 4.6%, to 13,140 points, while the prospect of a rise in interest rates penalizes technology stocks. The Dow Jones subscribes 3%, to 33,245 points, chaining a seventh consecutive session in the red.
Among the biggest declines of the session, Tesla fell 8.7% ahead of the publication of its quarterly results on Wednesday. Moderna lost 12%, followed by Pfizer (-4.6%). Chipmaker Nvidia, which posted one of the best performances of 2021, fell 8.8%.
While the market expects four rate hikes this year in the United States, “there is a risk that it will be surprised by an even more restrictive position in the coming months”, said Jim Reid, strategist at Deutsche Bank . This does not exclude that the Fed increases its rates six to seven times this year, after a first increase in March. “We may be experiencing the calm before the storm,” he warns.
After rising sharply in anticipation of the Fed’s rate hike, bond yields eased as a result of the search for risk-free investments. The US 10-year rate lost 4 basis points, to 1.724%.
-Rebecca Feng, The Wall Street Journal (French version Thomas Varela) ed: ECH
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January 24, 2022 12:18 ET (17:18 GMT)