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Wall Street cuts losses and ends up mixed after the fall of Archegos Capital



Wall street It has cut losses in the last few bars and ended the session with a mixed sign, only the Dow Jones has managed to advance positions, in fact it has set new all-time highs. This has come after the collapse of the hedge fund Archegos Capital Management, whose positions, valued at $ 30 billion, were liquidated last Friday and have had a strong impact on some investment banks, such as Nomura, Credit Suisse, Deustche Bank and Goldman Sachs.

Archegos, linked to the controversial speculator Bill hwang, was unable to meet the requirements of several entities, which caused the liquidation of its portfolio in the market and caused heavy losses to stocks such as Viacom and Discovery, in addition to Chinese groups such as Baidu and Tencent.

The fall of Archegos has in turn caused heavy losses for the banks that financed their speculative operations, such as the bank itself. Goldman sachs; and to a greater extent for Credit Suisse and Nomura, which have plummeted between 13 and 16%.

On the other hand, oil West texas rises 0.97%, to $ 61.56, after the cargo ship that was blocking the Suez Canal has been refloated, which is allowing to recover the maritime traffic little by little.

In addition, according to Ipek Ozkardeskaya, an analyst at Swissquote, the technological actions Americans can be pressured if Joe Biden Unveils $ 3 Trillion Billion Dollar Infrastructure Plan, which could add to the positive pressure on US bond yields.

"Higher government spending means stronger positive pressure on inflation expectations and additional positive pressure on yields, due to expectations of a stricter Federal Reserve (Fed) policy, "says this expert.

All this while the rotation of assets continues towards cyclical stocks from technology stocks and those associated with growth. Good proof of this is that the Dow Jones and the S&P 500 are up 6.9% and 4.3%, respectively, so far in March, while the Nasdaq is down 0.4% in the same period.

We remember that Wall Street will close on Good Friday, but the March Employment Report It is scheduled for release that day. Economists expect the economy to believe 630,000 jobs and that the unemployment rate drops to 6% from 6.2%.

In other markets, the profitability of the 10-year American bond drops slightly to 1.65%, while the euro it depreciates slightly by 0.14% and changes to $ 1.1775.

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