Stock Market: Wall Street Falls, Bond Rates Rise

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MARKET REVIEW. The New York Stock Exchange traded sharply lower after Friday’s open under pressure from tech, and the bond market tensed as the dollar rose after several Fed members on Thursday expressed their determination to continue raising rates.

On Thursday, the indices were slightly positive. The Dow Jones added 0.06% to 33,999.04, the Nasdaq Technology Index added 0.21% to 12,965.34 and the broader S&P 500 added 0.24% to 4,283.74.

In Toronto, the flagship index also started in negative territory in a market that has lost most of the market. Technology, non-ferrous metals and healthcare are the most affected sectors.

To (re)read market news

Stock indices at 10:30.

in Toronto S&P/TSX fell 122.61 points (-0.61%) to 20,142.76 points.

In New York S&P500 fell 45.80 points (-1.07%) to 4,237.94 points.

in Nasdaq fell 226.14 points (-1.74%) to 12,739.20 points.

in DOW showed a decrease of 231.95 points (-0.68%) to 33,767.09 points.

in loon was down $0.0031 (-0.4025%) to $0.7696.

in oil increased by $0.65 (+0.72%) to $91.15.

L’gold fell $5.90 (-0.33%) to $1,765.30.

in bitcoin decreased from USD 2,056.95 (-8.77%) to USD 21,405.56.

Context

“Wall Street is digesting the comments of several regional Fed officials” who insisted on the need to continue the turns of monetary screws to curb inflation, analysts at Wells Fargo summed up.

St. Louis Regional Fed President James Bullard, known for his pro-tight monetary policy stance, indicated he was “leaning at this stage to 75 basis points,” or three-quarters of a percentage point, as in previous meetings.

He expects US key rates to reach 3.75%-4.00% instead of 2.25%-2.50% today.

Investors fled risky assets and took refuge in Treasury bonds, whose price moves inversely with yield.

Those for 10 years surged to 2.97% from 2.88% a day earlier, the highest in a month, as did the dollar, a safe-haven par excellence that jumped 0.56% for the dollar index.

Bond yields “are rising globally and that’s affecting equities,” Spartan Capital Securities’ Peter Cardillo told AFP.

He also noted “a very strong dollar, which is putting pressure on the Japanese yen and the euro.” “It looks like the euro will fall below parity,” he warned.

At 108.08 points, the dollar index, which compares the US dollar to a basket of other major currencies, was close to its highest reading in decades, hit on July 14.

Nasdaq has suffered the most, where many technology stocks are concentrated, riskier assets that are very sensitive to rate hikes.

Meta (META Facebook) lost 2.47%, Alphabet (GOOG) 1.89%, Are you here (TSLA) too.

Concerning Apple (AAPL), which also discovered a security hole in its iPhones and iPads that “could have been actively exploited” by hackers, 0.46%.

A highly speculative name for a struggling home improvement chain bed Badly as well as outside (BBBY) plunged 43% on the Nasdaq to $10.64 after one of its major shareholders defected.

Ryan Cohen, owner of a chain of video game stores, game stop (GME) – another viral stock – lost about 11.8% of the company’s shares.

Earlier this week, he revealed that he had purchased a stake, leading investors to believe he would be a long-term partner and causing the stock to double in value within days.

Some investors felt they were wrong and called on the SEC to investigate.

Another failure, online furniture distributor Wafer (W) fell by 13.80%, while it will lay off 870 people, or 5% of its workforce.

Deer & Co. (DE), the world’s number one agricultural machinery manufacturer, lost 2% after downgrading its full-year results guidance. The group reported difficulties in the supply chain and increased production costs.

Bitcoin, a typical risky asset, fell 8.77% to $21,405.56. The virtual currency has lost $2,000 in the last twenty-four hours.

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