PARIS (Reuters) – The New York Stock Exchange opened lower on Friday for the last session of the week, continuing the decline started since Wednesday following announcements by the United States Federal Reserve which raised fears of a prolonged period of monetary tightening at risk. of a recession.
In early trading, the Dow Jones index, which recorded its biggest drop in three months on Thursday, lost another 214.38 points, or 0.65%, to 32,987.84 points. The broader Standard & Poor’s 500 and the tech-heavy Nasdaq Composite, which both posted their largest one-session percentage declines in six weeks on Thursday, fell 0.61%, respectively, to 3,871, 94 points, and 0.31%, to 10,776.78 points.
Investors are still stunned by the latest projections from the Fed which suggest that interest rates will exceed 5% in 2023, a level not seen since 2007 and out of step with their expectations.
The money markets are banking on at least two rate hikes of 25 basis points next year and a peak in rates of around 4.9% in mid-2023 before falling back to around 4.4% at the end of the year. next year, according to the FedWacth barometer.
The rest of the session could be animated by the publication of the monthly S&P Global PMI indices in preliminary version in the United States. The Reuters consensus expects the composite PMI to improve slightly to 47.0 from 46.4 in November.
In values, Adobe jumped 5.01%, the publisher of Photoshop having declared Thursday to anticipate in the first quarter an adjusted profit per share higher than the consensus of the analysts.
Meta Platforms takes 4.09% after raising JP Morgan’s recommendation to “overweight” against “neutral”.
The oil groups Chevron and Exxon Mobil lost 1.12% and 1.38% respectively in the wake of the oil ebb, following the rise in interest rate expectations in the United States.
(Written by Claude Chendjou, edited by Kate Entringer)