Bad day for Wall Street

NEW YORK (EFE).— Wall Street closed in red and the Dow Jones Industrial Average, its main indicator, fell 1.35%, just over 500 points, following the inflation data in the United States for January was released, which was worse than the expected.

At the end of the session on the New York Stock Exchange, the Dow Jones stood at 38,273 units, while the selective S&P 500 fell 1.37% and stood at 4,953 points. The Nasdaq index, where large technology companies are listed, fell 1.8%, to 15,656 points.

The inflation rate in the United States fell three tenths in January, to 3.1%, which is in line with the objectives of the Federal Reserve (Fed) and its plans to begin reducing rates at some point this year, if the prices continue to fall.

However, the figure was higher than investors’ expectations, who placed the rate at 2.9% year-on-year, according to data collected by the CNBC network.

The US Bureau of Labor Statistics (BLA) reported on the same day yesterday that in monthly terms consumer prices increased three tenths compared to December, while underlying inflation, a key data that the Fed analyzes to make its decisions on interest rates, remained at 3.9% year-on-year.

The benchmark 10-year US Treasury bond was boosted by the news and closed the session at 4.316%.

The main indicators of the US market have had five consecutive weeks of gains, driven largely by expectations that the Federal Reserve will carry out several rate cuts this year, something that recent inflation data once once more calls into question.

By sector, red dominated, with the largest losses for non-essential goods (-1.96%) and real estate (-1.84%).

Mexican Bag

The Mexican Stock Exchange (BMV) fell 0.89% in its main indicator, the IPC, to stand at 56,906.99 units, in a session with widespread losses and in which the Mexican market moved in line with the United States.

The director of Economic and Financial Analysis of Banco Base, Gabriela Siller, explained that “the capital market closed with widespread losses globally, following the publication of inflation in the United States, which would lead the Federal Reserve to maintain its policy. more restrictive monetary policy for a longer period of time.”

For his part, the director of Economic Analysis at financial group Actinver, Enrique Covarrubias, pointed out that the CPI “moved in line with the declines observed in the main indices of the United States.”

He explained that during the day the shares had “a marked negative bias, where 31 of the 35 companies that make up the index presented losses in their prices.”

And he said that “investors will remain attentive to the publication of corporate reports from local companies, in which América Móvil and Walmex stand out.”

With the fall of this day, the CPI returned to negative territory and registered a decline of 0.84% ​​so far this year.

On the day, the peso depreciated 0.76% once morest the dollar, trading at 17.22 units per greenback, following trading at 17.09 at the close of the previous week, according to data from the Bank of Mexico.

The IPC closed the session at 56,906.99 units, with a loss of 511.56 points and a negative variation of 0.89% compared to the previous day.

The volume traded in the market reached 216 million securities for an amount of 16,647 million pesos (regarding 966.7 million dollars, at today’s exchange rate).

Of the 512 firms that traded on the day, 136 ended with their prices rising, 354 had losses and 22 closed unchanged.

The securities with the greatest upward variation were from the home builder Desarrollo Homex (HOMEX), with 8.33%; of the insurer Qualitas (Q), with 4.07%, and of the water storage, conduction and improvement company Grupo Rotoplas (AGUA), with 3.17%.

In contrast, the largest downward variations were from the airline Volaris (VOLAR A), with -5.19%; from the construction and infrastructure firm Sitios Latinoamérica (LASITE B-1), with -4.3%, and from the auto parts and automotive equipment firm Nemak (NEMAK A) with -3.99%.

During the day, the four sectors fell, starting with materials (-1.36%), followed by industrial (-1.32%), frequent consumption (-0.72%) and financial (- 0.14%).