Wall street has extended the correction of this Wednesday after the meeting of the Federal Reserve (Fed). The main US indices have fallen close to 1%, with the technology sector as the most punished in full profit taking (The Nasdaq has fallen 1.27%).
The US central bank chaired by Jerome Powell anticipated that it will not raise rates until at least 2024. "With inflation persistently below our long-term target, we are looking for it to be moderately above 2% for some time," he said. the entity in its statement. Powell also reiterated 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.
MACRO DATA AND OTHER MARKETS
In macro matters, the weekly unemployment data, in addition to the construction permit, with 860,000 initial unemployment claims, above the 850,000 anticipated. In addition, the Philadelphia Fed Manufacturing Index, which 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.
In the raw materials market, West Texas barrel, a benchmark in the United States, is trading at this time with a fall of 0.5%, to stand at around 40 dollars. On the other hand, in the foreign exchange market, the euro depreciates 0.09% and changes to 1.1804 dollars. And in the debt market, the yield on the US ten-year bond stands at 0.65%.
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