May 18, 2022

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Wall Street declines further after Fed rate report

Wall Street declines further after Fed rate report

On Wednesday evening Norwegian time came the minutes of the meeting where the interest rate decision was made. This indicates that members of the central bank’s board of directors discussed how the Fed should reduce the balance of the central bank.

The consensus is said to be a cut of about $95 billion a month, according to CNBC. The minutes also show that the central bank has taken into account increases in interest rates that are a quarter of a percentage point larger than the usual increases.

In mid-March, the US Federal Reserve raised its key interest rate by a quarter of a percentage point. This is remarkable The first rate hike from the US Federal Reserve since 2018but it might not be the last.

The decline in the US stock market indices intensified after the central bank presented its interest rate report. Investors are preparing for the fact that the US Federal Reserve will soon tighten its grip on fighting inflation and cooling the economy.

This is what Wall Street’s leading stock market indices look like after interest rates from the Federal Reserve.

  • The broad S&P 500 index fell 1.60%
  • The Dow Jones Industrial Average fell 1 percent
  • The Nasdaq Technology Index fell 2.85 percent

The trading day also started to fall. This decline can be seen in the context of further sanctions against Russia and the statements of Board Member Lyle Brainard at the US Federal Reserve (Fed) on Tuesday, where she said I hinted at a more aggressive approach To combat high inflation that you think is at risk of rising.

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 going down

Twitter’s share is almost unchanged after yesterday’s rally. At the opening on Tuesday, the stake rose by nearly eight percent on the news that eccentric Tesla chief Elon Musk will get a seat on the company’s board. But during the day, Twitter’s share dipped, and by the time of the close, Twitter’s share was up 2%.

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.

Tesla’s share is down 5.6 percent so far on Wednesday.

The ten-year-old keeps climbing

After the Federal Reserve signaled a tighter monetary policy, the 10-year period jumped to 2.56 percent on Tuesday. When the exchange opened on Wednesday, the benchmark 10-year US government debt rate was up 2.63 percent — the highest level since 2019, according to TDN Direkt.

Following the Federal Reserve’s interest rate report, the 10-year figure is 2.615 percent.

The ten-year-old is often referred to as the “world’s hottest interest rate” because it is a reference to many interest rates, but also other financial variables, around the world.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.