Monday, March 4

Wall Street futures come higher after Tuesday’s sell-off

In the pre-opening of Wall Street, real estate developers are listed with declines after KeyBanc downgraded the sector on concerns about impending interest rate hikes that will drive up mortgage costs.

Wall Street closed lower on Tuesday with its main gauge, the DOW JONES Ind Average, down 1.51% in anticipation of several interest rate hikes this year.

According to data at the end of the session on the New York Stock Exchange, the DOW JONES Ind Average fell 543.34 points, to 35,368.47 units, while the selective S&P 500 fell 1.84% or 85.74 integers, to 4,577.11 points.

The NASDAQ 100 composite index, which brings together the most important technology companies, fell by a remarkable 2.60% or 386.86 units, to 14,506.90 integers, weighed down by the technology sector.

After the long weekend for the holiday in honor of Martin Luther King, New York’s trading floor was dominated by risk aversion and investors decidedly bet on sales.

According to analysts, the market is preparing for a more aggressive adjustment than anticipated in monetary policy by the Federal Reserve, which is generating movements in the debt market.

The US central bank has indicated that it will prioritize the fight against inflation, which has grown at its fastest rate in almost 40 years and stands at 7%, and it is estimated that it will raise rates at least three or four times.

The yields of 10-year Treasury bond exceeded 1.87% at closing, a level not seen since January 2020, prior to the covid-19 pandemic. This Wednesday, Treasury bonds rise again, with the two-year bond at 1.06% and the reference 10-year Treasury bond reaching 1.89%.

Goldman Sachs fell 7% after reporting record annual results but disappointing in the fourth quarter, in which profits have fallen mainly due to higher expenses.

Video game developer Activision Blizzard was also in the news, shooting up 26% after Microsoft announced its purchase for $69 billion. The shares of the Japanese electronics and entertainment giant Sony, owner of PlayStation, have fallen 12.79% on the Tokyo Stock Exchange this Wednesday, after yesterday the agreement was known by which Microsoft, owner of Xbox, will buy the video game developer Activision Blizzard for 68.7 billion dollars (60.326 million euros).

By sectors, the most affected were technology (-2.49%), financial (-2.3%) and communications (-1.99%).

This Wednesday you present your Bank of America, Morgan Stanley, Procter & Gamble, US Bancorp, UnitedHealth and United Airlines accounts. Of the 33 S&P 500 companies that reported quarterly results, nearly 70% beat Wall Street expectations.