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Technology weighs on Wall Street despite Fed's 'dovish' message

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Wall street extends Wednesday's correction after Fed, especially in the sector of Technology, which continues to collect profits. The entity chaired by Powell anticipated that it will not raise rates, at least, until 2024. "With the inflation Persistently below our long-term goal, we seek it to be moderately above 2% for some time, "the US central bank said in its statement.

Powell reiterated in turn that the Fed will keep this policy flexible and ultra-accommodative "until goals are achieved, including full employment."

Historically, the prospect of very low rates for a certain period of time stimulates increases in the stock market, but this has not been the case. "While there was nothing really scary in the Fed's speech, stocks have reacted lower, especially tech stocks," acknowledge experts from Gorilla Trades.

Its main objective is avoid a deflationary spiral That adds to the serious problems that the US economy is currently experiencing due to the impact of the coronavirus pandemic. "We do not want to confuse citizens. We do not want high inflation, but inflation that in the long term averages 2%, "commented the president of the organization, Jerome Powell, during the press conference.

In macro matters, this Thursday the weekly unemployment data, in addition to the building permit and the Philadelphia Fed manufacturing index. The initial unemployment claims They have been placed at 860,000, above the 850,000 anticipated.

For his part, Philadelphia Fed Manufacturing Index it is down to 15 from 17.2, although it is in line with the forecasts. Finally, the building permits and housing starts August have been slightly lower than estimated.

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