Sunday, January 29

‘Slumps’ on Wall Street: Nasdaq and S&P 500 have worst week since the start of the pandemic

The main indices on Wall Street closed with their worst drop since the last week of March 2020, which coincides with the strongest stage of the first wave of the COVID-19 pandemic in the world.

The Dow Jones fell 1.30 percent to settle at 34,265 units; the S&P 500 fell 1.89 percent to 4,397 points, and the Nasdaq lost 2.72 percent to 13,769 units.

In the weekly cut, the Nasdaq and the S&P 500 had drops of 7.55 and 5.68 percent, respectively, recording its worst variation since the last week of March 2020, while the Dow Jones fell 4.58 percent, its worst decrease since the last week of October of that same year.

“US stocks have been on a rollercoaster ride after Netflix’s dismal results. Investors have two big concerns: It seems like every day traders are being reminded that inflationary pressures aren’t going to go away anytime soon and could lead the Federal Reserve to become too aggressive in tightening monetary policy. de Oanda, Senior Analyst at Oanda.

He added that the other concern is that companies’ earnings growth expectations for the fourth quarter of 2021 may have been overly optimistic and undervalued on rising labor costs. geopolitical risks they are also adding fuel to the selling pressure.

How did the Mexican bags fare?

In Mexico, the indicators followed the same trend, since the S&P/BMV IPC fell 1.73 percent, registering a level of 51,599 points, while the FTSE BIVA fell 1.64 percent, trading at 1,67.33 units.

During the week, the main indicator of the BMV closed with a negative variation of 3.99 percento, while the FTSE BIVA fell 3.93 percent, the worst performance for both indices from the last week of January 2021.

“Despite the fact that we maintain our IPyC estimate at 58 thousand points for the end of 2022, we consider that, in the coming days, our stock market could be presenting an adjustment in its price, which would give us a better entry level, derived of a series of negative factors that could be influencing the mood of investors,” said Carlos González, director of economic analysis at Monex.

Crude, with 5 weeks on the rise

Despite the fact that international oil prices showed losses in this Friday’s session, in the weekly variation it was possible to close with a rally of five positive weeks, after reaching maximum prices of 7 years ago.

In the operation this Friday, the WTI fell 0.90 percent to have a price of 84.78 dollars per barrel and the Brent decreased 0.72 percent to settle at a price of 87.74 dollars per barrel.

For the weekly close, the WTI and the Brent presented increases of 1.15 and 1.95 percent, respectively, registering a five-week rally of price increases and their longest streak since last October.

“Alleviating concerns about the omicron variant and its effect on demand may continue to support oil prices after Brent inching closer to $90 a barrel. On the supply side, outages in Libya and Ecuador, struggling production increases in Nigeria and Angola, and declining expectations for Russia’s marginal production capacity add to bullish sentiment.

US bonuses are falling

In the United States, rates on longer-dated Treasury assets showed declines during the week, with the 10-year bond rate falling 3.8 basis points to 1.74 percent.