Wall Street steers towards a sharp fall from the start – E24

This is what it looks like in the trade before opening time on Wall Street at 11.45 Norwegian time:

• The Dow Jones futures are down 1.88 percent
• The S&P 500 futures down 2.34 percent
• Nadaq futures down 2.82 percent

Wednesday’s decision from the Federal Reserve was thus an interest rate increase of 0.75 percentage points – the largest since 1994. But such an interest rate increase is “unusually large” and will not be common, emphasized central bank governor Jerome Powell.

– This was probably a little less hawkish than feared, comments DNB Markets economist Kelly Chen in today’s morning report.

The statement helped send the US indices significantly upwards. The largest increase was for the technology-heavy Nasdaq, which rounded the interest rate day up by 2.5 per cent. The Dow Jones broke a five-day losing streak. US government interest rates, on the other hand, pulled down, and the ten-year interest rate peaked at just over 3.2 per cent at its lowest level.

But on Thursday, the trend has reversed.

– It did not take long before the stock jump after the Fed faded, and given the gloomier prospects for growth, it is not surprising, writes chief strategist Chris Beauchamp at IG Group in a report, reproduced by Bloomberg.

– We still live in the same world as 24 hours ago, a world where growth slows, earnings continue to fall and prices continue to rise. This is not a good environment for stocks, he adds.

The European stock exchanges are also on the decline significantly in the morning, with the stock exchanges in Paris, Frankfurt and London down around two percent. The Oslo Stock Exchange is no exception, where the Main Index is down close to one percent.

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