Wall Street’s stock index fell sharply after the market panicked that the US central bank, the Fed, has waited too long to cut interest rates and that the US economy is drifting into recession.
The narrow large company index Dow Jones fell 1.2 percent, the broad large company index S&P 500 index 1.4 percent and the technology-focused Nasdaq 2.3 percent.
The central bank Fed said yesterday, Wednesday, that the economy is in good shape, but that it will closely monitor the development of employment in addition to inflation. The US has long had a very strong employment situation, but recently it has shown signs of softening.
Governor of the central bank Jerome Powell considered it possible that interest rates would start to fall at the next interest rate meeting in September.
Recession fears were increased by the industrial purchasing managers’ index reported on Thursday, which fell more than expected to 46.8 points.
The stock exchange day started well, because Facebook’s parent company Meta Platforms had reported a strong result after the stock markets closed on Wednesday. After the stock markets closed on Thursday, a technology company was expected Apple’s and internet company Amazon’s results.
However, the stock markets turned down, but Meta’s share price rose by 4.4 percent during the day.
Among the companies in the &P 500 index, the steepest decline was the vaccine company that issued a profit warning Modernwhose share fell by 21 percent.
Semiconductor manufacturers such as Nvidia, AMD, Qualcomm and Broadcom.
Source: www.arvopaperi.fi
