(Finance) – US equity markets move lower, after being sharply disillusioned with their hopes of a first dovish pivot by the Fed. After the fourth consecutive 75bp rate hike, US Central Bank President Jerome Powell said that “the incoming data from our last meeting suggests that the final level of interest rates will be higher than expected“.” We think we have a long way to go, we have some ground to cover with interest rates before we reach that level of interest rates that we believe is sufficiently restrictive, “he said, hinting to investors that monetary tightening does not it’s over.
“The central banks are in aggressive tightening mode across the boardsince the fight against high inflation is not over – commented Silvia Dall’Angelo, Senior Economist at Federated Hermes – Central banks are acting vigorously to prevent second-round effects, i.e. the risk that high inflation and persistent consolidation against the backdrop of a rigid labor market “.
“THE data in constant evolution they will continue to define not only the pace of the rate hike – as highlighted in yesterday’s Fed statement and today’s BoE press conference – but also the end point of the current tightening cycle, “he added.
On the macroeconomic front, weekly requests for unemployment benefit In the USA. In the 3rd quarter the productivity of the non-agricultural sector in the US increased on a quarterly basis by 0.3%, while the cost per unit of work rose by 3.5%. In September 2022 the trade balance it showed a deficit of $ 73.3 billion, up from the deficit in August. Both the non-manufacturing ISM and the October services PMI fell. On the other hand, orders from the industry rose slightly in September.
Meanwhile the quarterly. Modern reduced its annual sales estimate for its COVID-19 vaccine. ConocoPhillips recorded profit growth and decided to increase the quarterly dividend.
Due to the switch to summer time in Europe, which took place on Sunday 30 October 2022, the US and Canadian stock exchanges they open temporarily one hour earlierat 14:30 CET, and close at 21:00 CET until Sunday 6 November 2022, when daylight saving time will start in the United States and Canada.
The Dow Jones accuses a drop of 0.32%; on the same line, a bad day for theS&P 500, which loses 0.78% to 3,730 points. Down also the Nasdaq 100 (-1.27%).