Wall Street: Wall Street opens lower before the hearing of the president of the Fed

PARIS (Reuters) – The New York Stock Exchange opened lower on Tuesday pending a hearing in the United States Senate of Federal Reserve Chairman Jerome Powell as the market fears an accelerated tightening of the market. US monetary policy.

In the first exchanges, the Dow Jones index lost 240.36 points, or 0.67%, to 35,828.51 points and the Standard & Poor’s 500, larger, fell 0.59% to 4,642.46 points.

The Nasdaq Composite lost 0.66%, or 99.10 points, to 14,843.72.

The Fed chairman is due to speak at 3:00 p.m. GMT before the Senate Banking Committee with a view to his reappointment as head of the institution, but investors are especially hoping to obtain indications on the calendar of the central bank’s policy and its inflation strategy.

In the statement drafted for the occasion, Jerome Powell pledged to prevent higher inflation from setting in.

The publication of the monthly US employment report on Friday showed average wages rising above expectations, fueling expectations of an interest rate hike as early as March, with some banks like Goldman Sachs now banking on four hikes. the cost of credit this year in the United States.

Raphael Bostic, chairman of the Atlanta Fed, said Tuesday in favor of at least three rate hikes this year.

The return of inflationary fears on the markets comes at a time when the US consumer price index in the United States for the month of December is due to be published on Wednesday.

In addition to fears about inflation, there are other risks. The World Bank on Tuesday revised down its economic growth forecasts for the United States, the euro zone and China, and it warned of the risk of seeing public debts, widening inequalities and new variants of the economy. COVID-19 threatening recovery in emerging countries.

In equity markets, the S & P-500 failed to break a cycle of five straight sessions in the red, while the timid rebound on the Nasdaq on Monday subsided. Almost all of the S & P-500’s compartments are in the red, with the exception of energy (+ 0.47%).

The heavyweights of new technologies are retreating: Microsoft dropping 1.25%, Intel 0.8%, while the sector index loses 0.5%. Micron Technologies fell 1.33% after the departure of CFO David Zinsner from competitor Intel.

The large banks, which were sought after in the last sessions in anticipation of a rate hike, also give way, with an index down 0.12%. JPMorgan Chase & Co, Goldman Sachs, Bank of America Corp each fell about 0.5%.

* For the values ​​to follow, click on

(Written by Claude Chendjou, edited by Jean-Michel Bélot)

Copyright © 2022 Thomson Reuters

Source link -84