2023-10-20 23:19:43
Concern about the increase in interest rates by the Federal Reserve (Fed) in its fight against inflation has weighed on the three Wall Street indicators, which accumulated losses during the third week of October.
The most affected indicator was the Nasdaq, where the main technology companies are listed, which this week lost 3.2%, registering its second consecutive week of losses.
While the S&P 500 lost 2.4% during the week and the Dow Jones fell 1.6%.
Yesterday, in a speech in New York, Fed Chairman Jerome Powell reiterated that inflation remains high and that there is still a way to go to bring it to 2%, which will require reaching a “sufficiently restrictive” position and “maintaining it.” until it shows signs of getting closer to that goal.
Also in reaction to Powell’s words, ten-year Treasury bonds rose again and briefly reached above 5%, again at a record not seen since 2007, although they later moderated their rise, a trend that has been reversed. continued watching this Friday.
It was also a tough week for Tesla shares, which fell more than 15% in recent days and closed today at $211.99 after CEO Elon Musk sounded pessimistic about macroeconomic issues in a conference call. on third-quarter results on Wednesday.
It’s the worst week for Tesla stock of the year, although the electric car maker’s stock is still up 96% so far this year.
It was not a good week for Nvidia either, which lost almost 9% this week, after the United States Department of Commerce announced plans to tighten restrictions on sales of advanced artificial intelligence chips to China.
Investors have also been keeping an eye on corporate results this week, as 17% of S&P 500 companies have released their third-quarter results.
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73% of those companies have reported better-than-expected earnings, according to FactSet.
However, this is below the five-year average of 77%.
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