Wall Street opens in the red and the Dow Jones falls 1.20%

Wall Street opens in the red and the Dow Jones falls 1.20%

New York, Aug 22 – Wall Street opened this Monday in red and its main indicator, the Dow Jones Industrials, lost 1.20%, when investors are concerned about the economy and assess what the next step will be of the US Federal Reserve (Fed) to control inflation.

Ten minutes after the trading floor opened, the Dow Jones lost 404.03 points to 33,302.71, while the selective S&P 500 lost 1.44% or 60.78 units to 4,167.70.

The Nasdaq composite market index, which brings together the main technology companies, lost 1.70% or 216.07 integers, to 12,489.14.

Investors await comments Friday from Fed Chairman Jerome Powell in Jackson Hole, Wyoming, on the central bank’s economic outlook.

The Fed raised borrowing costs this year in an effort to rein in inflation and signaled more hikes to come. However, some investors believe that inflation is already close to its peak.

“The market is starting to get nervous about (Fed meeting place) Jackson Hole,” Hani Redha, portfolio manager at PineBridge Investments, told The Wall Street Journal.

Following the latest central bank meeting, some investors expected the Fed to be less aggressive with interest rate hikes as economic data worsened, the expert added, noting that “there is talk that perhaps Powell will try to reverse that trend.” perception”.

All sectors woke up in red and the greatest losses were for non-essential goods (-1.95%), technology (-1.81%) and energy (-1.78%).

The 30 listed companies of the Dow Jones also started the day dyed red and the biggest losses were for Salesforce (-2.63%), Dow (-2.34%) and American Express (-2.28%).

Also striking is the fall in the shares of AMC (famous cinema chain), which plummeted more than 34%. The drop comes as rival Cineworld is considering filing for bankruptcy.

In other markets, Texas oil fell to $88.40 a barrel, the 10-year US Treasury yield rose to 2.992%, gold fell to $1,748.30 an ounce and the dollar gained ground against the euro, with an exchange rate of 0.9994.

Samuel Edwards
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