Wall Street: S & P-500 sinks in Powell direction | Interest rate decision is financial

The Dow Jones gained 30 points, or 0.1%. The Nasdaq is down 1.3%. The broad S & P500 Index is down 0.5%.

During the day, the US housing market numbers came in, indicating that the number of homes under construction fell 10.3% year on year in February.

Investors mainly look at interest rates. The 10-year US government loan is up again today to 1.668%. This is the highest point in thirteen months.

Inflatievrees

Markets are now fearful of an accelerating rise in inflation. Tonight they hope for an answer from Fed Chairman Jerome Powell of how he thinks central banks can contain the rapid increase in inflation.

Powell is expected to leave the interest rate decision unchanged. But now that the economy is starting to recover, some drivers may be pushing their expectations of a rate hike. The consensus is that it will start in the middle of 2023.

According to economists Bert Cullen and Carsten Brzeski of ING, inflation in Europe will rise this year, but it is unlikely to continue. In 2022, inflation will drop to less than 2%.

The interest rate on 10-year German government bonds is expected to rise to -0.289%. When interest rates go up, the rates or prices go down.

Falling oil prices

The Euro remains steady at $ 1,899. The price of gold fell 0.2% to $ 1,728 per ounce (31.1 grams).

Oil prices are declining, and the US Energy Institute and the International Energy Agency said in its forecast that with all stocks, it will be impossible to see another increase in oil prices. Fear of a new “giant cycle” in oil is limited by the very limited demand from companies.

Chips are under attack

Chipaandelen dalen. Smart product Samsung It warns of a global chip shortage, which could jeopardize its launch of new models.

Apple, city, cat Drops 2%, Intel Corporation 1.1% in Sales force 1,3%.

Pharmacies stocks are under pressure. According to the media, the US FTC will limit and monitor mergers and acquisitions closely.

Solar Cell Manufacturer Power plug It drops 19%. NRG Energy It decreases 15%. Tesla Lose 3%.

The fashion retailer is on the rise in stocks Lands end By 7%. Group beats forecasts for the past quarter with earnings and turnover.

Softwarpfeliger CrowdStrike Trading up 6% on a more positive market outlook, with earnings per share of 13 cents, up 5 cents more than expectations.

Taxi app Uber Drops 2%. In the United Kingdom, it employs all of its employees as permanent employees with an additional social security fee. Uber is responding to a lawsuit that its employees wanted to enforce.

Internet company Baidu Drops into red. It is expected to raise 3.1 billion dollars in capital from the list of the Hong Kong Stock Exchange. The market was based on $ 3 billion.

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