NEW YORK– Wall Street entered its third straight week in the red, weighed down by soaring Treasury rates.
The star index, the Dow Jones Industrial Wall Streetgained a marginal 0.07% closing at 34,500.66 points, the Nasdaq technology yielded 0.20% to 13,290.78 units and the expanded S&P 500 index -main reference for investors- closed practically stable (-0.01% ), at 4,369.71 points.
The fall in the prices of long-term US Treasury bonds, and the consequent increase in their yields, moderated slightly on Friday the 18th.
Ten-year bond rates hit 4.30% in midweek and retreated to 4.25% on Friday, giving a breather to the stock market, which often suffers when yields on bonds rise and become tempting. For investors looking for less volatility.
“It was a difficult week,” admitted Tom Cahill, of Ventura Wealth Management, when questioned by AFP.
“On Friday, a lot of investors looked at bond prices, saw that they were getting really attractive and bought, which pushed yields down (ndlr: interest paid by the issuer) and that was favorable for equities,” the analyst explained.
The rise in rates that marked the week was caused by the strict attitude of the Federal Reserve (Fed, central bank), reflected in the extracts of the minutes of its last meeting of monetary policy, published on Wednesday.
Alphabet thus closed with a fall of 1.80%, Meta of 0.65%, Tesla of 1.70%.
This week markets await speeches by Fed head Jerome Powell and his fellow European Central Bank (ECB) Christine Lagarde.
FOUNTAIN: With information from AFP
