Home » today » Business » Wall Street closes the week with its worst day of the year – 2024-04-13 07:26:15

Wall Street closes the week with its worst day of the year – 2024-04-13 07:26:15

People walk past the New York Stock Exchange on Wall Street in New York, New York, USA, on November 4, 2020. EFE/EPA/JUSTIN LANE

Wall Street This Friday closed the worst week since the beginning of the year as uncertainty prevailed again regarding the expected drop in interest rates in USA.

Despite the positive day this Friday, in the weekly cumulative period the Dow Jones Industrial Average lost 2.3%, the selective S&P 500 fell 0.95% and the Nasdaq index lost 0.8%.

Investors have been paying attention to the latest data that reflects persistent inflation and the strength of the labor market, to which more signs of caution have been added by the Reserva Federal (Fed).

After a first quarter of gains in the stock market, the market began April cautiously upon learning of the rise in an inflation indicator closely followed by the central bank.

The personal consumption expenditure (PCE) price index registered an increase of 0.3% in February compared to the previous month, and of 2.8% in an annualized rate, although the increases were expected.

U.S. Federal Reserve Board Chairman Jerome Powell answers a question from the media during a news conference following a meeting of the Federal Open Market Committee at the Federal Reserve Board Building Federal Reserve William McChesney Martin Jr. in Washington, DC, US, March 22, 2023. Powell announced an interest rate increase of 0.25 percentage points. (Open, United States, Rome) EFE/EPA/SHAWN THEW

Meanwhile, the labor market delivered solid results in March: the unemployment rate fell to 3.8%, 303,000 jobs were created and salaries grew 0.3% compared to the previous month.

The president of the Fed, Jerome Powellinsisted this week that it is too early to determine whether inflation is under control, and one of his colleagues, Neel Kashkari, spoke in similar terms.

Kashkari, president of the Fed in Minnesotasuggested that there may not be a rate cut this year due to economic strength, a position already expressed by other Federal Reserve officials.

Those prospects have revived fears that interest rates will remain high for a long time and have led some analysts to delay the possibility of a cut beyond June.

Benchmark 10-year Treasury yields soared Wednesday to 4.429%, their highest level since the start of the year.

At the corporate level, Intel is one of the biggest losers and loses 12% weekly after reporting losses of $7 billion in its semiconductor manufacturing business in 2023.

Tesla, for its part, slashed 6% in value after reporting a decline in its deliveries of electric vehicles in the first quarter that has called into question its growth and demand prospects.

Disney has been in the news for its shareholder meeting, which renewed the board of directors, failing the attempt by the activist investor Nelson Peltz to enter the organ and promote changes. The stock is down 3% weekly.

In the oil market, the Texas barrel closes another week on the rise, with a revaluation of around 4.5% and a price of $86.91, due to the escalation of tensions in the Middle East. EFE (I)

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