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Wall Street closes in red and the Dow Jones falls 0.52% due to the Fed minutes

Wall Street closed this Wednesday in red and the Dow Jones Industrials, its main indicator, fell 0.52% after publishing the minutes of the last meeting of the US Federal Reserve (Fed)who forecast further interest rate hikes to control inflation.

At the end of the operations in the NYSEthe Dow Jones fell to 34,765.7 points, while the selective S&P 500 yielded 0.76%, to 4,404.3 integers.

The Nasdaq composite market index, which groups technology companies, lost a notable 1.15%, up to 13,474.6 units.

On July 26, and after taking a break in June, the Fed raised interest rates by 0.25 percentage points, which brought them to a range of between 5.25% and 5.5%. %, its highest level since 2001.

In the minutes of that meeting, as reported this Wednesday, the members of the Fed’s Federal Open Market Committee recorded that they saw “significant upside risks to inflation, which could require further tightening of monetary policy.” .

The Fed’s fears were confirmed on August 10 when, after twelve consecutive months of falls, the inflation rate in the United States rose two tenths in July and stood at 3.2%.

The prospect of the central bank’s rate hike campaign continuing did not sit well with the stock market, which began the session looking for direction but leaned towards selling.

In the debt market, the 10-year Treasury yield rose to 4.27%, its highest level in 15 years.

By sector, the greatest losses were for non-essential goods companies (-1.27%), communications (-1.21%) and real estate (-1.2%), while only services remained afloat public (0.46%).

In it Dow Jonesthe decreases predominated, led by Intel (-3.57%), which announced that it was suspending the purchase of the chip manufacturer Tower Semiconductor due to the lack of support from the regulator, and will also have to pay that company a penalty of US$ 353 millions.

Walgreens (-1.43%), Caterpillar (-1.03%) and Procter & Gamble (-1.02%) also fell, compared to the advances of Travelers (1.16%) and Home Depot (0.27 %), among others.

Outside the group, the Target supermarket chain shot up almost 3% after reporting worse-than-expected quarterly results and lowering its business expectations for the year as a whole.

In other markets, Texas oil closed lower at US$79.38 a barrel, gold also fell to US$1,923.2 an ounce and the ten-year Treasury bond rose to 4.266%.

Source: Elcomercio

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