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Snap plunges 43% and pulls tech - Bolsa

Snap plunges 43% and pulls tech – Bolsa

Wall Street’s main indexes closed lower, with the exception of the Dow Jones. The technology sector saw the biggest decline.

The Dow Jones Industrial Average managed to recover in the final minutes of the session, closing 0.15% higher at 31,928.62 points. The Standard & Poor’s 500 Index fell 0.81% to 3,923.68 points.

For his part, the Nasdaq Technology Index lost 2.35% to settle at 11264.45 points.

Yesterday, Snap – owner of Snapchat – revised down its earnings estimates for the current quarter, causing it to fall today. It closed down 43.10% at $12.79 and pulled the entire tech sector down.

“The week started off well for the bulls, hungry for an oxygen balloon. Joe Biden’s statement on reassessing tariffs on China gave impetus to a session with interesting gains, taking advantage of the lack of relevant news, over the two days. Before knowing the minutes of the last meeting of the Federal Reserve , which will certainly be the most important event this week for investors, who are trying at this point to gauge the strength of the central bank in raising interest rates until the end of the year., confirms Marco Silva, ActivTrades advisor, in his daily analysis that Negócios was able to access.

This is because “while the majority accepts that US interest rates should be at the neutral level at the beginning of 2023, between 2.25% and 2.5%, the fact is that there are some voices within the Board of Governors, such as James Pollard, who are more austere on the The launch, which advocates a level above 3% to effectively contain inflation,” he adds.

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In addition, there is the issue of reducing the Federal Reserve’s balance sheet, which seems calmer than interest rates, something that can be confirmed in the document that will be known on Wednesday in the last period of the day, thus leaving the only area of ​​the traditional hot reaction of investors, which does not always continue On Thursday, ”Marco Silva notes.

Despite the lack of minutes and with the prevailing market noise debating whether or not we are in a short-term bottom, the bears took a breather on Monday. However, “and as a sign of the fragile sentiment, the announcement of the extremely pessimistic outlook for the company that owns Snapchat, after the market closed on Monday, canceled all the bulls’ business at once,” leaving indexes north — the advisor says Americans are back in recessions.