PARIS, Aug 29 (Reuters) – The New York Stock Exchange opened lower on Monday, still hurt by fears of a rapid and sustained rise in interest rates following the latest statements by Jerome Powell, the chairman of the US Federal Reserve (Fed).
About ten minutes after the first exchanges, the Dow Jones index lost 232.99 points, or 0.72%, to 32,050.41 points and the wider Standard & Poor’s 500 fell 0.52% to 4,036, 46 dots.
The Nasdaq Composite lost 0.32%, or 38.772 points, to 12,102.93.
Jerome Powell told the Jackson Hole central bankers’ symposium on Friday that tight monetary policy “for a while” was needed before inflation was brought under control, casting a chill over markets still hoping for moderation. in the pace of rising interest rates amid heightened recession risk and signs that price inflation may have peaked.
Money markets are now pricing a 64.5% chance of a third 75bps rate hike in the US in September and expect rates to rise to around 3.7% by the end of September. end of the year, the cost of credit having already increased by 225 points since March.
The CBOE volatility index, considered a good barometer of fear in the markets, jumped 5.6% to 27 points, the highest in seven weeks.
In values, while the yield on two-year Treasuries rose in session to its highest level since the end of 2007 at 3.489%, the technology giants continue their decline started on Friday in the prospect of an extended period of interest rates students. Apple, Tesla and Nvidia lost between 0.5% and 1.1%, while the “tech” index fell by 0.48%.
On the upside, the Chinese e-commerce group listed on Wall Street Pinduoduo soared 16.5% after its quarterly results exceeded expectations.