Wall Street drops, Dow Jones 3.12%, Nasdaq loses 4.99%

New York, May 5 (EFE). – Wall Street closed its worst day since 2020 in the red, the Dow Jones Industrial Average lost 3.12% while the Nasdaq Composite, where major tech companies are listed, fell 4.99%, all this as investors digest the US Federal Reserve’s announcement (Fed ) to raise interest rates by half a point to curb inflation.

At the end of operations on the New York Stock Exchange, the Dow Jones lost 1063.09 points to 32,997.97 points, while the selective S&P 500 fell 3.56%, or 153.30 integers, to 4,146.87.

The Nasdaq Composite Index fell 4.99%, or 647.16 points, to close at 12,317.69 points.

Stocks suffered their worst day since 2020 and today’s sharp turnaround caused the stock to lose its previous session’s highs.

“If it goes up 3% and then loses half the next day, that’s pretty normal,” Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Investigations, said in data compiled by CNBC.

On Wednesday, the US Federal Reserve (Fed) announced a half-point rate hike aimed at combating hyperinflation, the largest rate hike in more than two decades, since the US central bank last announced a half-point increase. in the year 2000.

The main goal of the US central bank at the moment is to mitigate the high rate of inflation, which reached 8.5% last March, the highest rate recorded since 1981.

The stock market initially welcomed the rate hike, at yesterday’s close, but today all indicators responded bearish.

At the end of today’s session, all sectors were painted red, the most affected were non-essential goods (-5.81%), technology (-4.93%) and telecommunications (-4.09%).

Red was the activator in the 30 values ​​of the Dow Jones Index; The companies that recorded the largest losses were: Salesforce (-7.11%), Nike (-5.86%) and Apple (-5.57%).

Texas Intermediate crude closed the session 0.4% higher at $108.26 a barrel, and at the end of the day on Wall Street, gold was trading at $1,878.90 an ounce, and the 10-year US bond yield was up. To 3.03% and the dollar rose against the euro, at the exchange rate of 1.0539. EFE

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