A Wall Street sign in front of the New York Stock Exchange in Manhattan
Chuck Mikolajczak
NEW YORK (Archyde.com) – The New York Stock Exchange ended sharply lower on Wednesday, as comments by U.S. Federal Reserve (Fed) Chairman Jerome Powell sent indices back into the red.
The Dow Jones index fell -1.55%, or 505.44 points, to 32,147.76 points.
The broader S&P-500 lost 96.41 points, or 2.50%, to 3,759.69 points.
The Nasdaq Composite fell for its part by 366.05 points (-3.36%) to 10,524.80 points.
The Fed raised its main interest rate by three-quarters of a point on Wednesday in a bid to rein in inflation, suggesting however that future increases in the cost of credit may come at a slower pace.
Investors were expecting another 75 basis point rate hike while hoping the Fed would show it was ready to ease its approach at its December meeting.
Comments from Jerome Powell, who said it was “very premature” to consider a break, however, sent the clues down.
“It’s just a speech, maybe it’s a moment of frustration. I don’t think he should have put it that way, although I understand why he did. With the hindsight, he made the right choice,” said Stephen Massocca, vice president of Wedbush Securities in San Francisco.
“Ultimately, it will be good for the economy and for the markets.”
Private sector employment data released on Wednesday by trade consultancy ADP showed that 239,000 jobs were created in October in the United States, a figure higher than the 195,000 forecast by Archyde.com, a sign of a job market. always dynamic.
The data on job creations, the unemployment rate and wages, which will be released on Friday, will finish informing investors regarding the labor market.
* The reminder of the session in Europe: [.EUFR]
(Report Chuck Mikolajczak; French version Camille Raynaud)