The US stock markets have had their worst week on the stock market since March 2020. The broad S&P 500 index ended Friday 5.8 percent lower than a week earlier. This is the largest weekly loss in New York since the start of the corona crisis.
The sharp rate hike by the US Federal Reserve that took place on Wednesday caused a gloomy mood among investors. It fueled fears of economic contraction. The central bank indicated that it was prepared to accept a recession and higher unemployment in order to contain the high inflation.
The rapid increase in interest rates is always experienced as annoying by investors. Higher interest rates are unfavorable for riskier investments such as stocks.
Federal Reserve Chairman Jerome Powell underlined on Friday that the Fed really wants to reduce the currency depreciation in the world’s largest economy to 2 percent. The main indicators closed with mixed results.
The Dow-Jones index was down 0.1 percent at 29,888.78 points. The leading index fell below 30,000 points for the first time since January last year on Thursday. For the S&P 500, there was a small plus on the last trading day of the week, of 0.2 percent at 3674.84 points. Tech gauge Nasdaq gained 1.4 percent at 10,798.35 points, after the price boom of 4 percent a day earlier.
Adobe went down more than 1 percent into the weekend. The software maker gave a disappointing outlook for the rest of the year. US Steel, in turn, added just under 2 percent. The steelmaker released a better-than-expected outlook for the current quarter. The company is benefiting from rising demand and higher steel prices.
The Chinese online stores JD.com and Alibaba are both listed in New York and also attracted attention. JD.com recorded an increase of 5.2 percent, it said via CEO Xin Lijun that the company is considering delivering meals. Alibaba climbed about 1 percent after a possible IPO of Ant Group, the payment company of Alibaba, is one step closer, according to a media report.
US investors were getting ready for a long weekend. Wall Street’s doors will remain closed on Monday because of Juneteenth. This is the commemoration of the end of slavery in the United States.
The euro was worth $1.0496, against $1.0473 at the close of the European stock markets earlier in the day. A barrel of US oil cost nearly 7 percent less at $109.68. Brent oil became about 6 percent cheaper at $113.05 a barrel.
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