Wall Street ends September with losses

Wall Street September ended with accumulated losses in the main indicators as a possibility of closure Government in the United Statese is becoming more and more true.

It was also the worst month of the year for the S&P 500 index and for the technology index. Nasdaq, which recorded a drop of 4.9% and 5.8%, respectively. He Dow Jones Industrials fell 3.5% in September.

The bad data comes despite investors’ renewed hopes that US Central Bank (Fed) has already reached the limit of its rate hikes, after it was reported this Friday that the core index of personal consumption expenditures (PCE), the Fed’s preferred gauge for measuring inflation, slowed to 0.1% in August in monthly terms.

However, the fear of effects on the economy the continuous closure of the Administration ended up burdening the stock market.

“Although the market is increasingly desensitized to what has unfortunately become a permanent feature of American politics, the impact on real economy is not always trivial,” said Gilles Moëc, Chief Economist at AXA IM, in an analysis on the subject today.

Moëc acknowledged that it is impossible to know at this point how much longer the predictable government shutdown that begins this weekend will last, but warned that the last one, between December 2018 and January 2019, which lasted 45 days, cost the US economy 0 ,1% of GDP in the fourth quarter of 2018 and 0.2% in the first quarter of 2019.

A consequence that the situation could also have is that federal agencies which are responsible for collecting and analyzing data on the economy will stop working, so the Fed may have trouble making its next rate decision in November.

If it is American legislators they do not reach a political agreement on financing federal agencies Before the end of this Saturday, the Administration closes a large part of its services.

All this is followed by the situation of the trade union strike. auto workers (UAW)which affects the three largest companies in the sector in the country, General Motors, Ford and Stellantis.

The union announced today that it will extend strike against Ford and GM. They indicated yesterday that they were aiming for a 30 percent wage increase, slightly less than what they had originally asked for, but above the 20 percent the companies had proposed.

The bad stock market data comes after an already bad August where the S&P 500 and Nasdaq They already had their worst month of the year then. Sector-wise, red prevailed today, especially in the energy and financial sectors, although with some gains in technology and real estate.

Look what he has This YouTube channel!