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The US key indices were cautiously positive for a while on Wednesday, but as the end of trading approached, the good mood disappeared. When the New York stock exchanges closed, the indices looked like this:
- The broad S&P 500 index fell 0.15 percent.
- The Dow Jones industrial average fell 0.16 percent.
- The Nasdaq technology index fell 0.15 percent.
Powell met with the elected representatives
Tuesday’s sharp rise in the stock market was thus temporary. Last week was the worst stock market week since the economy reopened after the corona, driven by fears of a recession, ie an economic downturn.
The changing mood on Wall Street on Wednesday can be explained by the traders’ frantic attempts to interpret central bank governor Jerome Powell, Bloomberg writes.
The Fed chief was in a hearing in the US National Assembly on Wednesday. There he reiterated that the central bank intends to crack down on inflation, but also acknowledged that this could hit the economy hard and cause a recession.
Jerome Powell is the Governor of the US Federal Reserve. (Photo: Manuel Balce Ceneta / AP / NTB Scanpix)
– Not on autopilot
This was interpreted by several investors as a more “duet” approach to controlling inflation with the policy rate from Powell – ie cautiously, as opposed to aggressive and “hawkish”.
– He has acknowledged that interest rates will continue to rise, but that the committee will be aware of new data. This indicates that he will not tighten on autopilot, says portfolio manager Joe Gilbert in Integrity to Bloomberg.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms se her.
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