Wall Street is living one of the worst days of the year for fear of inflation – Bolsa

The Dow Jones Index closed down 1.99% to 33,587.40 points, in its worst session since January. This is after the opening of the week, hitting a historic high in daily trading at 35,091.56 points.

Standard & Poor’s 500 returned 2.14% to 4,063.04 points after last Friday’s 4,238.04 points maximum. Today it recorded its worst performance since February.

For its part, the technology Nasdaq Composite Index fell 2.67% to 13,031.68 points, on the worst day since March 18 – something that actually happened two days ago, when it fell 2.55%.

The country’s inflation numbers for April were higher than estimated (4.2%, versus the 3.6% economists had expected), which raised concerns from more market players, who fear that the Fed will decide to raise rates. the prices.

The tech index was again the most punished, as it has been highly sensitive to concerns surrounding inflation in recent months.

Fed Chairman Jerome Powell reiterated that for the central bank to change its policy, there must be an improvement in the labor market and a rise in inflation in the medium term – a temporary rise in the short term is something that does not scare us. Federal Reserve. However, this new data reinforced concerns that the Fed will not keep key interest rates at their current historic lows for long.

The fear is formal

“It’s official. Investors are scared. Very scared,” CNN confirms, as HAM CNN Business Fear and Greed Index [índice do medo e ganância] Today he entered the “fear” zone for the first time since March.

Three of the seven indicators of market sentiment that the index tracks are at levels of “extreme fear”: demand for bonds as well as options to sell, in addition to the VIX – which measures market volatility and which rose by 20% in today’s session.