NEW YORK– Wall Street continued to plummet this Wednesday, while readjusting its outlook for rate cuts by the Federal Reserve, following economic data on retail sales.
The Dow Jones on Wall Street index lost 0.25%, the technology Nasdaq 0.59% and the S&P 500 0.56%.
Retail sales in the United States ended the year with an increase of 5.6% over 2022, a behavior that sustained the country’s growth despite inflation that remains above the objectives of the Federal Reserve (Fed or Central Bank). .
Purchases by American families grew 0.6% in December compared to November, according to data published Wednesday by the Department of Commerce. The figure is above the expectations of analysts, who expected 0.4%, according to the consensus published by briefing.com.
The main conclusion of the report “is that consumer spending remained healthy in the last month of 2023, which does not strengthen the case for an imminent start of rate cuts” by the Fed, Briefing.com noted in a note of analysis.
“I think we are seeing the market readjust after the euphoria (over an eventual) rate cut in March,” said Peter Cardillo, of Spartan Capital, alluding to the expectations of some operators that are beginning to be revised.
They reduce the possibility of a rate cut in March
A cut in March is probably “off the agenda,” given the performance of the economy and the way central bank officials have talked about being cautious about interest rates.
Treasury bond rates thus continued to rise, with 10-year papers yielding 4.10%, a one-month high.
In the second part of the day, the Fed survey known as “Beige Book” published this Wednesday, reported stable economic activity or a modest expansion in eight of the 12 regions monitored by the Federal Reserve.
In addition, the labor market is rebalancing after more than two years of labor shortages, the report noted.
Among the values of the day, Boeing recovered 1.27% after falling almost 8% on Tuesday. The United States aviation regulatory agency, the FAA, indicated that it has already inspected some 40 Boeing 737 Max 9 that are on the ground after a door detached in mid-flight from an Alaska Airlines aircraft of this model.
Tesla lost 1.98% after the electric car manufacturer lowered the price of some of its models in several European countries, including France, Germany, the Netherlands, Norway, and also in China.
The American Albermale, the world’s main lithium producer, lost 4.17% to $120.70 after announcing investment reductions and a restructuring of operations, with layoffs, following a drop in the price of the white metal.
Source: With information from AFP
