March 29, 2024

News Collective

Complete New Zealand News World

Wall Street: Closing the week with a drop characterized by inflation and its impact on companies |  Finance |  Economie

Wall Street: Closing the week with a drop characterized by inflation and its impact on companies | Finance | Economie

Wall Street This Thursday closed a week shorter than usual with setbacks due to concerns about economic inflation And the consequences of high prices and war in ukraine It could be on the results of large US companies.

(be seen: If Elon Musk can keep Twitter… what will happen?).

Today’s session, the last of the week due to the Good Friday holiday, ended slightly lower Dow Jones Industrial And more important than selective losses Standard & Poor’s 500 Composite market index Nasdaq.

On the weekly account, the Dow Jones Industrial Average fell by one 0.8%, Three-week streak of decline, while the S&P 500 lost one 2.1% and Nasdaq a 2.6%.

Meanwhile, on the other side of the Atlantic, large European markets have seen mixed trends, with declines in Frankfurt s London 0.84% ​​and 0.69%, respectively, increases in Madrid (1.08%), Paris (0.63%) and Milan (0.17%).

at United State, The economic debate continues to be marked by high prices, after inflation reached 8.5% in March, the highest number since 1981, driven above all by inflation rates. Rising prices of energy, food and housing.

(be seen: Intra-trade, a priority to revitalize the economy).

The numbers published on Tuesday even exceeded the expectations of some analysts who had already expected a very significant increase in prices.

According to the latest data, American consumers They are spending more and more on basic products such as petrol and food, which may previously lead to lower sales in other sectors, despite the fact that many families are collecting significant savings after pandemic.

See also  This is how the scenario changes after the creation of his first union in the United States

This week, Wall Street began receiving first-quarter corporate results, which are eagerly awaiting to see how inflation and turmoil from the war in Ukraine affect businesses. Big companies.

Madrid Stock Exchange.

EFE

At the moment, especially accounts The banking sector And the impact of the conflict is becoming clear: Five of the largest US banks reported lower profits than they did a year ago, with declines of up to 46%.

(be seen: With business forecast of over US$130 million, Fise Fair closed).

Many of these entities (including c. B. Morgan Chasewhich is the country’s largest bank) had to increase its reserves against credit losses due to the war’s shock to the markets, although some (particularly those focused on investment) have benefited from the turmoil of money in the stock market.

Moreover, the market continues to try to adapt to the shift in monetary policy brought about by Federal Reserve (Fed), After two years of stimulus measures to deal with the pandemic, several interest rate hikes are now preparing to deal with inflation.

Investors are trying to see if the Federal Reserve is on the right track. Can they land perfectly on lowering inflation without hurting the economy?‘, explain to The Wall Street Journal David Donabedian, Chief Investment Officer, CIBC Private Wealth.

(be seen: The total round created 90 jobs worth $238 million.).

per week as a whole, earnings from the sector Energetic Benefited areas such as technology or one Communications Recorded clear setbacks.

On the business front, the big story of the week came on Thursday with a multi-million dollar show launched by Elon Musk, Tesla CEO, to get Twitter.

See also  How the market is changing towards continuous updates

Musk, who is the richest person in the world according to Forbes He has offered $43,000 million to take control of the entire social network and has threatened to sell all the shares he currently owns if his proposal is not accepted.

After the news spread and after some important shareholders in the company announced their rejection of the acquisition and Musk himself said he was not sure he could move forward, Twitter shares closed with 1.8% decline.

EFE