Wall Street opens out of order, rates still a concern, Corporate News - WORDROM.COM

Wall Street opens out of order, rates still a concern, Corporate News

PARIS, Sept 26 (Reuters) – The New York Stock Exchange opened in scattered order on Monday as caution continues to dominate markets after announcements last week from the Federal Reserve (Fed) that it does not expect a lull on interest rates before 2024, even if it means causing a recession in the American economy.

Fifteen minutes after opening, the Dow Jones index lost 74.03 points, or 0.25%, to 29,516.38 points. The Standard & Poor’s 500, wider, however nibbles 0.10% to 3,696.99 points.

The Nasdaq Composite took 0.8%, or 86.67 points, to 10,954.602.

Anxious to curb high inflation, the Fed indicated last Wednesday that its rates could peak at 4.60% in 2023 and that it does not expect any cuts before 2024.

These announcements weighed on the three major Wall Street indices which lost 4% to 5% last week, while the Dow Jones approached the dreaded “bear market” zone on Friday.

“The Fed seems to believe that it can raise rates and keep inflation from rising without creating a recession (..) but it has already been wrong once about inflation and unfortunately it will be wrong on the fact avoid a recession,” said Peter Cardillo, chief economist at Spartan Capital Securities.

The OECD indicates Monday in its new forecasts that the developed economies are at risk of a recession due in particular to the war led by Russia in Ukraine, inflation and the energy crisis.

In values, cyclical securities such as Boeing and JPMorgan Chase lost 0.84% ​​and 0.21% respectively, due to concerns about the state of health of the American economy.

Oil groups Chevron, Exxon Mobil, Occidental Petroleum, Schlumberger and Halliburton fell 0.4% to 1.5% as oil prices fell to a low since January due to fears over global demand.

On the upside, technology and growth groups like Apple, Microsoft, Amazon and Tesla are benefiting from cheap purchases, taking 1.26%, 0.82%, 2.28% and 1.43% respectively.

Casino operators Wynn Resorts, Las Vegas Sands and Melco Resorts & Entertainment jump 10% to 23% after Macau announced it would reopen the sector in November to tourists from mainland China after nearly three years of coronavirus-related closure. COVID-19.

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