Wall Street chains three weeks of losses with its sights set on the Fed and China

Wall Street It has already been losing for three weeks, the latter weighed down especially by forecasts that the United States Federal Reserve (Fed) will continue to raise interest rates due to persistent inflation, and renewed concern about the Chinese economy.

In the weekly computation, the Dow Jones index fell an accumulated 2.2%, the selective S&P 500 lost 2.1% and the Nasdaq index 2.6%.

In the spotlight were the minutes of the last meeting of the Fed, in July, when the central bank raised interest rates by 0.25 percentage points and they came to be in a range between 5.25% and 5.5%, its highest level since 2001.

The Fed had paused its rate hike campaign the previous month, which encouraged the market, but the minutes of this meeting recorded that there were “significant upside risks to inflation, which could require further tightening of policy.” monetary politics”.

These risks were confirmed last week, when it became known that in July the inflation rate rose two tenths after twelve months of decline, standing at 3.2%, which once again sowed fears of a possible recession derived from measures and the Fed to control prices.

As a result of those prospects, yields on US government bonds soared on Thursday, with the 10-year Treasury rate reaching a 10-month high of 4.312%, helping to sell off on the stock market and above. all in the technology sector.

Investors are looking to the annual central bankers’ symposium in Jackson Hole next week to learn about the international next steps in the fight against inflation and make their predictions about the consequences.

Other news on Wall Street has been the bankruptcy of the indebted Chinese real estate giant Evergrande, which filed for bankruptcy in the US on Thursday to face its serious financial situation and avoid the seizure of its assets, and which has raised doubts about this sector in China.