Wall Street closed October with losses not seen in almost five years and chaining three months in the red, affected by the rise in the yield of United States bonds – levels not recorded in 16 years: above 5% at 10 years – and by fear of the extension of interest rates announced by the Federal Reserve (Fed).
The Nasdaq index ended the tenth month with a decline of 2.8%, its worst performance since 2018, hit to a certain extent by the quarterly results of large technology companies, which in several cases disappointed and were received with share sales.
And the selective S&P 500 fell 2.2% and the Dow Jones Industrial Average fell 1.4%. In both cases, the poorest performance is seen since October 2020.
According to Chris Iggo, Chief Investment Officer of Axa Investment Managers and President of the AXA IM Investment Institute, What is important for the markets will be expectations about future movements in the Fed’s trajectorywhich insists on a restrictive policy with high rates.
On the other hand, it should be added that GDP in the United States rose 4.9% in the third quarter and inflation stagnated at 3.7% in September.
Finally, according to EFE, October is usually a weak month for the markets; while November should bring better results because consumption picks up on dates like Black Friday.
Source: Larepublica
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