After its best week in two months, Wall Street had a shaky day and closed with losses
After Monday's holiday in the United States, the New York Stock Exchange experienced a session of uncertainty on days of presentation of results of large companies< /h2>
Traders work on the New York Stock Exchange (REUTERS/Andrew Kelly)
The major US indices closed mixed on Wall Street at the start of a short holiday week on Monday, but loaded with business results.
The S&P 500 fell 0.2% and the Nasdaq rose 0, 1 percent. The Dow Jones index fell 1.1%, mainly due to the strong loss of Goldman Sachs, whose results were well below analysts' estimates, when the negotiation was exhausted. More stocks rose on the New York Stock Exchange than fell.
The big communications companies and the < b>industrial values. Google's parent company fell 1% and Caterpillar lost 0.8%.
Stocks in the technology sector shone brightly. Chipmaker Nvidia rose 4.3%.
Yields on bonds remained relatively stable. The 10-year Treasury yield rose to 3.53% from 3.5% on Friday. Fixed income and stock markets were closed in the United States on Monday for Martin Luther King Jr. Day.
The broader market is coming off its best week in two months, as investors review the latest round of corporate earnings to get a better idea of how much damage inflation is inflicting on the economy. Analysts continue to expect S&P 500 companies to post fourth-quarter profit declines from a year earlier. That would be the first such decline since 2020, when the pandemic was crushing the economy.
More importantly, investors are watching financial updates< /b>companies to better determine whether inflation will continue to squeeze consumers' pockets and undermine corporate profits.
Several banks reported last week encouraging financial results, but also said a mild recession is likely on the horizon for the US economy. M&T Bank and Netflix will present their results on Thursday.
Inflation and how the Federal Reserve will continue its fight against high prices remains a major concern for investors as they review earnings results and corporate statements. Wall Street will also get another inflation update on Wednesday, when the government releases its December report on wholesale inflation, before prices are passed on to consumers. The Government will also publish data on retail sales December, which could give investors more insight into how inflation continues to affect consumer spending.
Consumer inflation has moderated for six straight months< /b>, which has given investors more hope that the Federal Reserve will soon consider easing its interest rate policy. However, the central bank has remained steadfast in its intention to continue raising rates this year and does not foresee any cuts until 2024 at the earliest.
The central bank has raised its rate overnight interest to a range between 4.25% and 4.50%, from approximately zero a year ago. The Fed will announce its next decision on interest rates on February 1. Investors expect a rise of just 0.25 percentage points next month, less than December's half-point rise and the previous four rises of 0.75 percentage points.
(With information from AP)