A massive fall on Wall Street

Wednesday evening Norwegian time, the minutes of the meeting came where the previous US Federal Reserve interest rate decision was taken. This indicates that the central bank is considering larger increases in interest rates from now on than usual increases of a quarter of a percentage point, even double, that is, half a percentage point.

To support the US economy during the pandemic, the central bank has been buying government bonds and other fixed-income government securities for several billion dollars a month. Those support purchases were halted in March, but the Fed is also looking to shrink the balance sheet. According to the minutes, the consensus on the reduction amounted to about 95 billion dollars per month.

The decline in the US stock market indices increased after the central bank presented the interest rate report, before the indices recovered somewhat at the time of closing.

When the trading day ended, it looked like this with the three leading indices on Wall Street:

• The broad S&P 500 index fell 0.97 percent
• The Dow Jones Industrial Average fell 0.42 percent
• The Nasdaq Technology Index fell 2.22 percent

Wednesday’s trading day was marked by a downturn from the start. This regression can be seen in relation to additional sanctions against Russia and statements on Tuesday from Board member Lael Brainard at the US Federal Reserve (Fed) where it is I hinted at a more aggressive approach To combat high inflation.

Brainard also stated that a steady pace of interest rate hikes is needed going forward. In isolation, interest rate increases are bad news for many technology stocks, which are priced more than many other stocks based on future income expectations.

New penalties

enlightened Wednesday White House The United States imposes a “total blockade” of the major banks Sberbank and Alphagroup. According to the US announcement, all new US investments in Russia are also prohibited.

The sanctions also target the two daughters of President Vladimir Putin and the family of Foreign Minister Sergei Lavrov. Severe sanctions are described as revenge for war crimes in Ukraine

Even before the announcement was announced Reuters The United States and its allies are expected to hit Russian banks and officials with the new package of sanctions.

The new US sanctions package comes on the heels of Fifth European Union sanctions package which was presented on Tuesday. The sanctions package included, among other things, a publisher banning imports of Russian coal. The package has yet to be approved by the 27 member states before it can be adopted.

Twitter is down

The Twitter share had a good start to the stock market week. Monday became known That Musk bought 9.2 percent of the stock in the company, which he criticized in part on Twitter.

The market responded by sending a Twitter share of up to 27 percent as of Monday, leaving Musk with Paper earning 6.8 billion NOK.

The rally continued on Tuesday when it became known that Musk had secured a seat on the Twitter board, and by closing time, the stock was up 2%.

But on Wednesday, Musk’s latest investment did not escape the bad mood that characterizes tech companies, and the stock was down 0.4 percent during the trading day.

Musk’s Tesla Inc fell 4.2 percent on Wednesday.

The ten-year-old keeps climbing

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