Wall Street shaken up by the rise in interest rates

Wall Street opens down (Photo . )

The New York stock Exchange fell Tuesday, as investors showing trepidation in the face of rising borrowing rates for the debt of the United States on the bond market.

Its index feature, the Dow Jones Industrial Average, ended a series of eight consecutive sessions of increases, losing a 0.78% 24.706,41 points.

The Nasdaq, in high coloring technology, has dropped 0.81 per cent, to 7.351,63 points.

The expanded index S&P 500 has dropped 0,68% to 2.711,45 points.

The publication in the beginning of the day of economic indicators rather favourable on the retail sales and manufacturing activity in the New York area have fuelled the optimism on the economic growth of the United States in the second quarter.

This has reinforced the idea that the american central bank (Fed) would continue to increase this year its rates to avoid an overheating of the u.s. economy and stem the risk of inflation is uncontrolled, promoting in turn the progression of interest rates in the bond market.

The rate of return on Treasury bonds to 10 years, the maturity of the u.s. debt the more watched by the markets, is thus mounted Tuesday up to 3,09%, its highest level since July 2011.

The rate on the debt in two years has climbed up to 2,585%, a level unseen since 2008.

– The Home Depot disappoints –

“This is the first time that the rate increase seems to have a significant impact on stock indices, stock investors seem to be looking more and more to the side of Treasury bills,” said Karl Haeling of LBBW.

For Maris Ogg, Tower Bridge Advisor, investors also use this as an excuse to make a profit after several sessions during which the indices have climbed “without fundamental change”.

“The fact is that we are in a period of transition,” she commented. “The market is questioning the level of inflation, on the actions of the Fed, on the impact this will have on the markets”, explained the specialist in predicting that the exchanges would remain limited as long as investors do not have clarity on the trajectory of us monetary policy, in the fall probably.

Among the values for Tuesday, Home Depot has dropped 1.62%, the chain specialising in diy, and the layout of the house who have announced quarterly results on the rise, but sales disappointing compared to expectations.

Symantec has grown by 4.35%. The group of computer security said Monday that the mysterious internal investigation, including the revelation last week had plunged the title of more than 30%, related to accounting rules and downplayed its potential impact.

Tesla (NASDAQ:TSLA) has dropped 2.67%, while Morgan Stanley (NYSE:MS) has lowered its outlook to being in a note, 376 $ 291 dollars.

A new accident involving a vehicle of the american manufacturer has to react, the CEO of Tesla, Elon Musk, who has complained of the disproportionate focus of attention given by the media.

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