Wall Street ends the week at half mast in the face of interest rate pressure

The New York Stock Exchange ended the week at half mast, faced with the tension of bond rates, the rise of the dollar and that of oil prices.

According to final results, the Dow Jones index fell 0.86% to 33,706.74 points, the tech-heavy Nasdaq fell 2.01% to 12,705.21 points and the broader S&P 500 index fell. from 1.29% to 4,228.48 points.

Wall Street first digested „comments from several regional Fed officials”, who insisted on the need to continue monetary tightening to curb inflation, Wells Fargo analysts summed up.

The president of the regional branch of the St Louis Fed, James Bullard, had indicated on Thursday „leaning at this stage, towards 75 basis points” for the next rate hike in September.

That of the Richmond branch, Thomas Barkin, reminded him on Friday that the acceleration next month of the reduction in the balance sheet of the Federal Reserve (Fed), by ceasing to reinvest in assets, would further tighten the financial conditions.

Will the key to the Fed’s messages be given at next week’s Jackson Hole central bankers’ symposium where Fed chief Jerome Powell is due to speak on Friday?

“Are they going to send signals about future monetary policy as they have done in previous years? Are they going to insist on the need for a restrictive policy?” Asked Karl Haeling of LBBW.

On the bond market, rates rose to more than 2.97% against 2.88% the day before for 10-year Treasury bills, the highest in a month.

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