USA: Stock markets down significantly, DJI lost almost 400 points.

Thursday’s quotations on Wall Street ended with strong declines in the main indices due to concerns about further interest rate increases in the United States.

The Dow Jones Industrial dropped 1.08% at closing. and amounted to 34,070.42 points.

The S&P 500 fell by 1.64% at the end of the day. and amounted to 4,330.00 points.

The Nasdaq Composite lost 1.82%. and closed the session at 13,223.99 points.

On Wednesday, the Fed left interest rates unchanged. in the USA unchanged at 5.25-5.50 percent. The Fed said that additional tightening of monetary policy would depend on macro data.

According to the FedWatch CME Group tool, 71 percent investors expect that interest rates in the USA will remain unchanged after the meeting at the turn of October and November, while 53 percent such a decision is expected in December.

“While the dot-plot suggests a risk of rising interest rates, we maintain our expectation that the rate hike cycle is likely to end and the Fed will not raise interest rates again. Various factors could weigh on the economy in the fourth quarter and prompt the Fed to suspend rate hikes due to below-trend GDP growth and lower core inflation, said Mark Haefele, chief investment officer at UBS Global Wealth Management.

Investors received a large portion of the latest macroeconomic data on Thursday.

The number of people applying for unemployment benefits for the first time last week in the US was 201,000. 225 thousand were expected. compared to 221 thousand previously, after correction from 220 thousand

Sales of homes on the secondary market in the US in August amounted to 4.04 million on an annual basis vs. the expected 4.1 million – reported the National Association of Realtors. A month earlier, the indicator was 4.07 million. In month-to-month terms, the indicator decreased by 0.7%. compared to -2.2 percent a month earlier. Expected +0.7 percent

The American Conference Board’s leading business climate index fell by 0.4 percent in August. Analysts expected the index to fall by 0.5%. A month earlier, the index fell by 0.3%. mdm, after correction from -0.4 percent

The Philadelphia Fed manufacturing activity index dropped to -13.5 points in September. with +12 points a month earlier. Analysts expected the index to be -1 point.

Shares of rate-sensitive companies including Apple, Meta Platforms, Alphabet and Nvidia fell as much as 1%. up to 3 percent after yields on two-year and 10-year U.S. Treasury bonds reached multi-year highs.

Amazon lost more than 4 percent in value.

FedEx rose almost 5%. after better-than-expected quarterly profit.

Broadcom fell nearly 3%. following media reports that Alphabet is considering abandoning the company as a supplier of artificial intelligence chips in 2027.

Marvell Technology lost 2%. Media reported that Alphabet was working to replace Broadcom with Marvell as the supplier of networking chips used in its data centers.

Cisco Systems shares fell almost 4 percent. after the company said it would acquire Splunk at a price of $157 per share, or approximately $28 billion.

On the oil market, WTI futures for November are trading at USD 89.59 per barrel, down 0.1%, and November Brent futures are down 0.30%. up to USD 93.24/b. (PAP)

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