New York (EFE).- The main indicators of Wall Street closed with weekly losses, thus breaking a streak of several weeks in positive, as the central banks show their concern about inflation and fears of a possible recession between the investors.
The Nasdaq, where the main technology companies are listed, subtracted more than 1%, thus ending an eight-week winning streak. Recording its worst weekly performance since March.
While the S&P 500 has lost more than 1% since the start of the week, ending five straight weeks of gains. And the Dow snapped a three-week winning streak, closing this week down more than 1%.
Despite the fact that the week has only been four working days – Monday was a holiday for Juneteenth – it has been intense. Investors’ attention has been on central banks and their fight against inflation.
Interest rates
The Bank of England raised interest rates by half a percentage point yesterday, a percentage higher than expected. In a fight to combat stubborn inflation, marking the 13th consecutive rate hike by the British central bank.
For his part, US Federal Reserve (Fed) Chairman Jerome Powell said two more rate hikes of 25 basis points each by the end of the year were “a pretty good assumption.”
These comments shatter the hopes of investors who expected the central bank to be near the end of its tightening cycle.
“Investors are clearly showing renewed fears of a US recession, as well as a global recession,” AXS Investments CEO Greg Bassuk said in a statement reported by CNBC.
“Inflation levels remain elevated and Federal Reserve policy definitely remains (at the center of) the investor narrative,” he added.