Wells Fargo indicated that the publication of the Federal Reserve documents “had been perceived with harsh conclusions.”
Wall Street is still buzzing from yesterday’s session. Although the main stock market indicators in the United States resumed a downward trajectory in their first operations, following a few minutes the scenario changed to mixed numbers. The Dow Jones falls 0.44% but the S&P 500 advances 0.10% and the Nasdaq expands 0.41%.
In this way, the technology index recovers part of the ground lost following the asset liquidations that took place in the last two days, which led it to fall by regarding 4% in the last two previous sessions.
After the falls experienced by US stocks yesterday, Wells Fargo explained that “investors evaluated the minutes of the meeting of the Federal Reserve in December. The publication had drawn harsh conclusions, and policymakers began discussing policy normalization and weighing a rate hike ‘earlier or at a faster pace’ than originally anticipated. “
This led to the Nasdaq being the one that suffered the most, with a fall of 3.34% which led to its worst day since February 2021. The 11 sectors of the S&P 500 closed with numbers in the red.
Analysts indicate that there is some concern among investors regarding what might be a volatile year for tech stocks, considering that they were the big winners during the pandemic by benefiting from low interest rates, as well as the gains they made for the home office of thousands of workers who boosted their sales.
While US Treasury yields are on track to rise for the fourth day in a row.
Analysts say this reflects investors’ conviction that the omicron variant will not prevent the Fed from tightening its monetary policy to control inflation. The yield on the 10-year Treasury bond rose to 1.732% from 1.703% it posted yesterday.
Panorama in Chile
The SP IPSA matches the trend of its international peers and the national selective falls 0.18% to 4,310.03 points. Among the most traded and falling papers is SQM-B, which fell 1.53% amid political discussions between the current administration and the team of President-elect Gabriel Boric for the lithium tender.
Vapors is another of the actions punished by local investors and fell 1.91%. Cencosud loses 1.04%.
On the other side of the coin, Engie’s papers climbed 1.73% and Banco de Chile expanded 0.73%.
In a morning report, Renta 4 recalled that “we must bear in mind that the President-elect, Gabriel Boric, should announce his cabinet by January 20, where the appointment of the Minister of Finance will be very relevant.”
Scenario in Europe and Asia
The European market is also suffering from the Fed’s course: the Euro Stoxx 50 falls 1.53%, the London FTSE 100 drops 1.03%, the Frankfurt DAX loses 1.39%, the Paris CAC 40 falls 1, 61% and the IBEX 35 in Madrid fell 0.51%.
Equities in Asia were not immune either, they ended the day lower following the Fed’s minutes were released. Tokyo’s Nikkei fell 2.88% and mainland China’s CSI 300 fell 1.02%. The exception was Hong Kong’s Hang Seng, which rose 0.72%.
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