May 18, 2024

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The Nasdaq index once again leads the declines on Wall Street due to the poor outlook for the US economy

The Nasdaq index once again leads the declines on Wall Street due to the poor outlook for the US economy

The New York Stock Exchange’s major indexes struggled again at the opening session on Tuesday. Once again, the Nasdaq Tech Index is leading the declines. Concerns about central bank rate hikes, the escalation of the war between Ukraine and Russia, and the “zero Covid” policy are casting a shadow over the economic outlook.

The Dow Jones It fell 0.36% to 29,096.59 points. The Standard & Poor’s 5000.65%, up to 3589.93 integers, and Nasdaq0.59%, up to 10492.61 integers.

The fall occurred after that International Monetary Fund (IMF) lowered him US economic growth forecast, It reaches 1.6% in 2022, seven-tenths less than what was calculated in July. However, it kept estimates for 2023 at 1%.

This is how Wall Street opens

Eduardo Boling

The cut in its forecast for this year comes after that GDP contraction Registered in the second quarter of the year by the world’s leading economy.

The financial institution warns in its report of this Interest rate hike by the Federal Reserve United States (Fed) to put an end to high inflation “They are limiting spending, especially in residential investments.”


On Wall Street, the interest was already there The release of inflation data in the United States for the month of September, Which will be announced next Thursday.

Expectations are for a twentieth moderation from the annual rate to 8.1%, after the Federal Reserve raised interest rates by 75 basis points, to the range between 3% and 3.25%, and report higher increases in the future. .

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[La Fed sube los tipos 75 puntos básicos y prevé llevarlos por encima del 4% antes de 2023]

While waiting for these numbers, investors are ruling out the 92% chance that the US central bank’s November increase will be three-quarters of a point again.

in this context, Big tech companies have suffered again. Companies such as Microsoft, Twitter, Amazon or Apple fell between 0.7% and 1.3%. exactly the contraryThe interest on US 10-year bonds has exceeded 4%.


Wall Street will also face this week At the beginning of the season display business results. Next Friday some of the major US banks will be reporting on their accounts.

CEO of one of them, Jamie Dimon, CEO of JPMorgan Chase, consider this monday The United States is likely to fall into a recession by the middle of next year.In six to nine months, they said, it’s hard to predict how deep that economic slowdown will be.

In an interview with the financial channel CNBCThe head of the largest US bank emphasized that the country’s economy remains in good shape, but made clear his concern about what lies ahead.

Poor economic prospects are adding to rising tensions between Russia and Ukraine. Moscow confirmed this Tuesday that it had carried out new “massive bombings”. Using “precision weapons” against targets in Ukraine over the last day, after rebounding attacks during the day on several cities, including Kyiv, that left nearly 20 dead and more than a hundred wounded.

In addition, Shanghai and other major Chinese cities have ramped up testing for Covid-19. Amid a surge in infections, some local authorities hastily closed schools, entertainment venues and tourist sites.

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Parque New York was already closed on Monday with all of its indicators in red. Dow Jones down 0.32%; The S&P 500 is 0.75% and the Nasdaq is 1.04%. Wall Street’s three major indices They were close to closing their fifth consecutive session in the negative.