Wall Street opens in red and the Dow Jones falls 1.35%

Wall Street opened this Friday in red and the Dow Jones Industrials, its main indicator, subtracted 1.35%, after a higher than expected rise in the PCE price index, which measures personal consumption spending in the United States.

Fifteen minutes after the start of operations on the New York Stock Exchange, the Dow Jones lost 448.12 points, up to 32,705.79 units, while the selective S&P 500 fell 1.52% or 60.99 integers, up to 3,951 .33 points.

The composite index of the Nasdaq market, where the main technology companies are listed, fell 1.84% or 213.56 units, to 11,376.84 integers.

When the fears that the US Federal Reserve (Fed) will continue with its aggressive rate hike policy have not yet dissipated, the increase in the PCE, one of the inflation gauges, above expectations reinforces the thesis that the Fed will continue to raise interest rates to curb inflation.

Specifically, the PCE price index for January increased 4.7% year-on-year and 0.6% compared to the previous month.

“The perception of monetary policy and where it is going has changed dramatically,” said David Donabedian, an analyst at CIBC Private Wealth US, quoted by The Wall Street Journal.

All sectors woke up with losses, with materials (-2.18%) as the most affected, ahead of non-essential goods (-2.13%) and technology (-1.93%).

The 30 large companies of the Dow Jones also woke up in red with Boeing (-3.09%), Salesforce (-2.05%), Caterpillar (-1.88%) and Apple (-1.83%) scoring the worst results.

In other markets, Texas oil fell to $74.25, gold fell to $1,818.7 an ounce, the 10-year US bond yield rose to 3.959% and the dollar gained ground against the euro, with a change of 1.0543.