NEW YORK, April 8, 2022 (AFP) — The New York Stock Exchange closed without defined trends this Friday (8), with the Dow Jones in the blue and the technology sector buoyed by the prospect of a stronger monetary adjustment by the Federal Reserve. (Fed), US Central Bank).
The Dow Jones Industrial Average ended 0.40% higher at 34,721.12 units, while the technical Nasdaq was down 1.34% at 13,711 points and the S&P 500 was down 0.26% at 4,488.39.
For the week, the three main New York stock indexes closed in the red, with the Nasdaq down about 4%, the S&P 500 down 1.13% and the Dow Jones down 0.28%.
“U.S. stocks closed unevenly during the day, but declined in the first week of the new quarter,” Schwab analysts summarized.
“Anxiety and apprehension seemed to dominate this relatively calm session, during which investors continued to reflect on the potential consequences of a very aggressive monetary adjustment cycle by the US central bank (Fed),” he said.
Wells Fargo analysts say the prospect of rate adjustments in the United States, the conflict in Ukraine and the Covid lockdown in China have weighed on the economic outlook.
Among these concerns were information from the Food and Agriculture Organization of the United Nations, the FAO, which showed that raw material prices rose nearly 13% in March, a record monthly increase.
“Overall, we do not expect this rapid monetary adjustment to lead to a recession in the US,” said Paul Ashworth of Capital Economics.
“But if the financial situation adjusts more strongly, with higher borrowing costs and/or the dollar, then a mild recession would not be ruled out,” he said.
Yields on 10-year Treasury bonds stood at 2.70% on Friday, up from 2.65% on Thursday, hitting a three-year high.
Meanwhile, the dollar hit a one-month high against the euro.
“Investors trade their tech stocks for more defensive values, such as energy, banking, healthcare or raw materials,” explained Oanda’s Edward Moya.
Thus, between the day’s values, Tesla retreated 3% to $1,025; Twitter is down 3.75% to $46.23; Amazon dropped 2.11% and Google (Alphabet) dropped 1.80%.
Shares of Microchip makers, which have risen in recent months over supply problems, continued to fall following unfavorable comments from analysts: Nvidia fell 4.50%, AMD fell 2.62% and Micron Technology 1.42%.
Wells Fargo & Company
AMD – Advanced Micro Devices