(CercleFinance.com) – The New York Stock Exchange accentuated its decline on Wednesday, dragged down by the better than expected figure for the services ISM which fueled fears of further rate hikes from the Fed.
At the end of the morning, the Dow Jones fell 0.5% to 34,461 points, while the Nasdaq Composite dropped 1.2% to 13,853.8 points.
US equity markets deepened their losses following the release of the ISM index in early trading, which showed that growth accelerated in the services sector in August.
At a time when inflationary pressures are once again causing concern, this statistic, which reflects the resistance of the American economy, could justify continued rate tightening by the Federal Reserve.
Wall Street had previously opened lower, weighed down by the rise in oil prices likely to have an adverse impact on inflation and to push, again, the Fed to raise its rates.
If the oil market gives in to some profit taking this morning, it had reached new highs since the fall of 2022 yesterday, driven by the decision of Saudi Arabia and Russia to limit their production.
After reaching the $87 threshold, US light crude (West Texas Intermediate, WTI) fell 0.3% to $86.4, which weighed on the S&P energy sector index (-0.3% ).
Against a background of rising inflation expectations with the rise in oil prices, the yield on 10-year Treasury bonds rose towards 4.29%.
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