U.S. stocks hit badly after investors nervous about interest rate forecasts: “This was a good reminder that the emergency monetary conditions and the era of free money are finally coming to an end.”


New York

New York stock market headlines fell on Friday as investors worried the US Federal Reserve might raise interest rates earlier than expected.

On a weekly basis, the Dow Jones index fell 3.5 percent, the broad S&P 500 index fell 1.9 percent and the Nasdaq index fell 0.3 percent.

Fed Central Banker James Bullard told CNBC today that inflation has accelerated faster than expected. Bullard said the Fed is likely to raise interest rates as early as next year.

Members of the US Federal Reserve’s Open Market Committee now see potential rate hikes as early as 2023, when back in March, central bankers did not believe they would raise interest rates until 2024 at the earliest. Seven open market committee members will see the Fed raise interest rates as early as next year.

Wall Street plunged into decline after Wednesday’s central bank open market committee meeting.

“This week we got a foretaste that the Fed will indeed finally change its monetary policy. This was a good reminder that the monetary conditions of the emergency and the era of free money are finally coming to an end, ”the financial company You are your MRB Partner strategists write according to CNBC.

CEO of the Fed Jerome Powell said on Wednesday that central bankers have discussed that at some point they will begin to streamline their securities buying program. The central bank currently buys $ 120 billion worth of securities every month.

Known as a manufacturer of processors for graphics cards Nvidian the stock closed 0.2 percent to $ 746.29. The company’s share was previously rising during trading. Nvidia’s share rose 4.8 percent yesterday.

Finanssitalo Jefferies reiterated the company’s buy recommendation and raised the company’s target share price from $ 740 to $ 854 after the company’s analyst Mark Lipacis had talked to Nvidia’s CFO. The analyst seemed convinced of the potential of Nvidia’s software licenses.

Bank stocks fell as long-term and short-term US government bond rates converged. Bank of American The stock fell 2.6 percent and JPMorgan Chasen the stock fell 2.5 percent.

The 10-year interest rate on U.S. government debt was declining after the stock markets closed and was quoted at 1.438 percent.

The Dow Jones index fell 1.6 percent, the broad S&P 500 index fell 1.3 percent and the Nasdaq index fell 0.9 percent.


Source: Arvopaperi by www.arvopaperi.fi.

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