New York stock exchanges closed lower today and accumulated losses of 1% for the week, after weak readings for purchasing managers’ indexes (PMIs, for their English acronym) in Europe and the United States reinforced fears that continued global monetary tightening could lead to a recession in major economies on the planet. the earth.
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The Dow Jones index closed down 0.65%, at 33,727.43 points. The S&P 500 lost 0.77%, to 4,348.33 points. The Nasdaq index fell 1.01% to 13,492.52 points. Over the course of the week, the Dow Jones is down 1.67%, the S&P 500 is down 1.39% and the Nasdaq is down 1.44%.
The results break a series of 8-week gains for the Nasdaq and 5-week gains for the S&P 500. All 11 sectors of the S&P 500 declined, amid worsening global economic prospects after a series of central banks decided to raise interest rates this week. PMIs for Germany, Eurozone, UK and US released today mostly came in with larger than expected declines, adding to risk aversion.
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“The theme of forcing central banks to raise interest rates more than expected has been persistent in a number of advanced economies,” commented Stephen Stanley, chief US economist at Santander. “The Federal Reserve (Fed) is struggling with the same dynamic, even if financial markets have not yet accepted this possibility,” he said.
The banking sector extended its losses yesterday. Investors followed Treasury Secretary Janet Yellen’s remarks today that more banks are likely to try to merge this year because higher interest rates and the recent banking turmoil make it more expensive to keep depositors. Among the largest US financial institutions, Goldman Sachs fell 1.52%, Citigroup lost 1.31% and Wells Fargo lost 1.10%.
In technology, the Meta Index is up 1.33% against other major technologies. Microsoft shares fell 1.38%, Amazon 0.63%, and Apple 0.17%. Tesla lost 3.03% after its rating took a third downgrade in 3 days from DZ Bank, Morgan Stanley and Barclays.
The semiconductor sector also underperformed, with some companies down more than 2%. Nvidia (-1.90%), Qualcomm (-2.55%), Broadcom (-2.41%), Texas Instruments (-2.87%), Applied Materials (-2.05%) closed lower, and Micron Technology (1.46%).
Cryptoasset Coinbase is up 6.92%, on the heels of bitcoin’s rally, which reached its highest level in a year.
