A Wall Street sign in front of the New York Stock Exchange in Manhattan
Chuck Mikolajczak
NEW YORK (Reuters) – The New York Stock Exchange closed sharply lower Wednesday after comments from US Federal Reserve (Fed) Chairman Jerome Powell brought the indices back into the red.
The Dow Jones Index fell -1.55%, or 505.44 points, to 32,147.76 points.
The broader S & P-500 lost 96.41 points, or 2.50%, to 3,759.69 points.
The Nasdaq Composite fell for its part by 366.05 points (-3.36%) to 10,524.80 points.
The Fed raised its benchmark interest rate by three-quarters of a percentage on Wednesday in an effort to curb inflation, suggesting, however, that future increases in the cost of credit may be taking place at a slower pace.
Investors were expecting another 75 basis point rate hike, hoping the Fed would show it was ready to ease its approach at its December meeting.
Comments from Jerome Powell, who said it was “very premature” to consider a break, however, sent the clues.
“It’s just a speech, maybe it’s a moment of frustration. I don’t think he should have put it that way, although I understand why he did it. In hindsight, he made the right choice,” said Stephen Massocca, vice president of Wedbush Securities in San Francisco.
“In the end, it will be good for the economy and good for the markets.”
Private sector employment data released Wednesday by commercial consultancy ADP showed that 239,000 jobs were created in the United States in October, more than the 195,000 forecast by Reuters, a sign of an ever-dynamic job market.
The data on job creation, unemployment rate and wages, which will be released on Friday, will finish informing investors about the job market.
* The reminder of the session in Europe: [.EUFR]
(Chuck Mikolajczak report; French version Camille Raynaud)
