Wall Street opens in red and Dow Jones falls 0.57% due to fear of new rate increases

Wall Street opened this Thursday in the red and the Dow Jones Industrial Average, its main indicator, fell 0.57%, in apparent reaction to the signals coming from the Federal Reserve (Fed)which on Wednesday did not rule out further increases in interest rates, although not immediately.

Five minutes after the start of operations on the New York Stock Exchange, the Dow Jones stood at 34,243 units and the selective S&P 500 also lost 0.74%, up to 4,606 points.

The worst stop at this time was the Nasdaq market composite index, in which the main technology companies are listed, which fell 0.87%, to 13,351 integers.

The president of the Fed, Jerome Powell, had an ambivalent message yesterday: “We really want to see convincing signs that we have reached the appropriate level (of increases). (…) We have seen progress and we appreciate it. But, you know, we need to see more progress before we are willing to conclude the hikes,” he said at a news conference.

Now, despite Powell’s message of deciding from meeting to meeting based on the data, it is true that the Federal Reserve’s projections, also published yesterday, suggest another rate hike before the end of the year, and they have done so. interpreted by the media and analysts.

Adding to these fears is the upward pace of US oil, which has risen 20% in the price of a Texas barrel since August, which is also affecting Wall Street.

By sector, almost all of them were in the red, with the largest losses for non-essential goods (-2.24%), technology (-1.22%) and communications (-1.14%).

Among the 30 stocks in the Dow Jones, losses also predominated, with the most affected being Cyisco (-3.37%), Caterpillar (-2.31%) and Salesforce (-1.57%).