Stocks closed in red after learning that the Fed will continue raising interest rates

Stocks closed in red after learning that the Fed will continue raising interest rates

Jerome Powell, president of the United States Federal Reserve (Fed) announced this Wednesday, June 21, that they will raise the interest rate for the remainder of the year, depending on the economic indicators that are observed.

Such a message disrupted the performance of the markets, according to César Romero, Head of Research at Renta4 SAB.

“As a consequence, the main stock indices of the North American country presented a negative behavior, continuing with the trend observed in recent days,” he explained to The Republic.

Thus, on Wall Street, the S&P 500 registered a fall of 0.30%, while the NASDAQ and the Dow Jones fell by 1.21% and 0.3%, respectively.

Romero adds that in fixed income, the yield of the Treasury Bond decreased at the beginning of the session and rose after the declarations of Raphael Bostic, president of the Atlanta FED, who remained in the same line as Powell, to end the day at 3.72%.

While in the Lima Stock Exchange (BVL), its two main indicators contracted 0.06% and 0.28%, respectively.

The values ​​that fell the most were MOROCOI1 (-4.88%), AENZAC1 (-3.85%) and CVERDEC1 (-3.34%), while those that rose the most were BVN (+1.75%), MINCORI1 (+1.11%) and ENDISPC1 (+0.91%). Regarding fixed income, the yield on the 10-year sovereign bond in soles fell by 1 basis point to 6.93%.

Source: Larepublica

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