- A bad day for stocks ended worse As the fears of Rate again, with the main sliding indices as technological companies report the first impacts of the United States commercial war with China.
The stock markets began badly and ended it worse, since chips manufacturers reported revenue impacts of the Trade War of China and a speech From the president of the Federal Reserve, Jerome Powell, revived the fears of the stagnant effects of tariffs.
The S&P 500 lost 2.2%, led by a sale of technology. The Dow lost 1.7% while technology weighs Nasdaq 3.1%fell.
Nvidia closed 7% after the chips manufacturer revealed Donald Trump restrictions It would cost the chips manufacturer $ 5.5 billion. Politics means that the Billion Dollars company can no longer export a key chip to China: an estimate of market analysts represents 10% of their income. Rival Micro Advanced Devices 7% was sank also after pointing out that these export limits could reach the chip manufacturer up to $ 800 million.
The existing uncertainty about commercial policies became stricter for a speech by the president of the Federal Reserve, Jerome Powell, on Wednesday afternoon, who warned that tariffs would create a “challenging scenario” for the Fed of “greater inflation and slower growth”, a recipe for staplation.
“There is no modern experience of how to think about” the White House commercial policy, Powell said in a speech before the Chicago Economic Club.
Bond yields decreased Powell’s comments, indicating investors pessimism about the possibility of a recession of the United States. The 10 -year treasure yield fell to 4.27% at the end of the day, from 4.35% in the morning and 4.48% last week, when bond markets experienced a crisis driven by the commercial war.
“The markets are fighting with great uncertainty, and that means volatility,” Powell added.
The dollar gained ground against the euro on Wednesday, but has lost approximately 6% of its value in the last month, since investors rethink the state of the currency as a safe shelter. The gold hunched near its record of $ 3,352 per ounce of Troy.
Earlier in the day, retail sales figures showed many consumers He hastened to buy cars, Electronics and other large ticket items last month before tariffs could raise prices.
Until now, the United States has a reference rate for most 10% countries, with a combined 145% rate on China. The assets of Canada and Mexico face rates of up to 25%, while imported cars, steel and aluminum are taxed at that same rate. Porcelain Repliation last week By imposing a 125% rate on US assets. Tariffs are expected to promote the highest consumer prices, and have contributed to the feeling of the consumer for the fourth consecutive month.
This story was originally presented in Fortune.com
Source link
