Wall Street is piling up weekly losses on fears of a hike

Wall Street closed the week with accumulated losses in the main indicators after United States Federal Reserve This week will dictate a pause in the movement of interest rates, but will leave the door open for further increases.

She was the most affected in the weekly calculation Nasdaq indexwhich gathers the country’s major technology companies, fell 3.6%, followed by the selective S&P 500, which fell 2.9%, both posting their third consecutive week in the red.

He Dow Jones Industrialswhich remained in the positive last week, broke the streak, but fell more moderately, 1.9%.

The US central bank decided on Wednesday, after its monetary policy meeting, to keep interest rates on hold interest in the current range, between 5.25 and 5.5%, as expected, but it is predicted that there will be another increase before the end of the year due to the persistence of inflation.

In that and in the possibility to the US economy Investors were mostly focused on staying longer in the high-rate environment, as they spent the end of the week selling stocks and debt due to low risk appetite generated by fears of a recession.

Numbers from labor marketwhich continue to point to their strength and give the Fed room to act aggressively: Jobless claims fell more than expected last week to an eight-month low of 201,000.

And it was constantly added to fuel price increase due to the prospect of tight supply over the winter following supply cuts from Saudi Arabia and Russia: Texas crude closes the week above $90, with analysts forecast to reach $100.

Amidst all this data, debt yields rose significantly: up to 4.5% in 10-year notes and 5.195% in 2-year notes, something not seen in about 15 years in both cases. , although this Friday they appeared to have stabilized at a the lowest level.

“On the list of risks for economy Add to that the growing possibility of a government shutdown – at the end of the month, due to a lack of political agreement on budgets – and a UAW union strike, which will undoubtedly increase wages,” he commented. analyst Ed Moya, from Oanda.

Investors are waiting UAW strikewhich represents about 145,000 workers in the automotive sector, and the strike of about 175,000 actors and screenwriters, which has been going on for more than two months due to the impact on the economy.

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