Wall Street. Sharp drops in share prices

The Dow Jones Industrial closed by 1.07 percent at the close to 36,407.11 points. The S&P 500 lost 1.94 percent at the end of the day. and amounted to 4,700.58 points. Nasdaq Composite fell 3.34 percent. and closed the session at 15,100.17 points.

“Global stock markets are experiencing volatility due to higher US Treasury yields and concerns about the Chinese technology sector,” said Sebastien Galy, senior macro strategist at Nordea Asset Management.

– If the Fed starts cutting the budget it will be a disaster. I assume that the central bank will want to keep the balance sheet stable, but it is possible that if inflation remains high, the Fed will agree to its reduction – said the president of Infrastructure Capital Management Jay Hatfield.

If it does, “it’s not just the Fed that won’t provide liquidity, it’ll just take it. No one will want to be in the stock market while the Fed takes liquidity. It’s like being at Coca-Cola when Warren Buffett is out. he was selling his position there. “

According to the minutes of the last Fed meeting published on Wednesday, the interest rate hike in the USA, it may be necessary before maximum employment is reached.

– Some meeting participants also noted that there may be circumstances in which the Committee could raise the target range for the federal funds rate before reaching maximum employment – e.g. if the Committee concluded that its employment and price stability objectives were not complementary in light of economic developments and inflationary pressure and inflation expectations rose significantly and steadily in a way that could hinder the achievement of the Committee’s long-term goals, wrote in the minutes following the meeting on 15 December.

– The participants of the meeting assessed that taking into account their individual perspectives for the development of the economy, the labor market and inflation, it may be justified to raise the federal funds rate earlier or at a faster pace than previously predicted – added.

In the opinion of the meeting participants, the decision to increase the pace of reduction of asset purchases was justified in the light of the increased inflationary pressure and the strengthening labor market.

– Some participants also noted that it may be appropriate to start reducing the size of the Federal Reserve’s balance sheet relatively shortly after the start of raising the federal funds rate. Some participants judged that a less accommodative policy stance in the future would probably be warranted and that the Committee should express a strong commitment to counteract heightened inflationary pressures, it added.

The protocol shows that inflation will fall in 2022. Supply chain bottlenecks may be more durable than expected, according to some FOMC members.

FOMC members noted that supply chain bottlenecks and labor shortages continue to limit the ability of firms to meet strong demand. They assessed that these challenges are likely to take longer and be more widespread than previously thought. The meeting participants generally expected that the bottlenecks in the global supply chain would persist at least until next year, it added.

Major tech companies, including Oracle, Cisco System and Intuit, fell sharply after the Fed minutes were released.

The US PMI composite index, prepared by Markit Economics, was 57 points in December. against 57.2 points in the previous month – given in the final calculation. Initially it was estimated that the index stood at 56.9 points.

The PMI index, describing the economic situation in the US services sector prepared by Markit Economics, amounted to 57.6 points in December. against 58 points in the previous month – stated in the final calculation. Initially, 57.5 points were estimated.

Johns Hopkins University reported that 2,366 Covid-19 fatalities had been registered in the last 24 hours. The presence of the coronavirus was confirmed in 885,541 consecutive people. The latest figures show that there have been a total of 57.06 million cases of coronavirus infection in America since the outbreak of the epidemic. The death toll is 830,284. The United States remains the world’s worst-hit country.

About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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