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Wall Street lives in the West Side Story and closes in red.  Debt yield close to 4% - Stock Exchange

Wall Street lives in the West Side Story and closes in red. Debt yield close to 4% – Stock Exchange

Wall Street ended the day in negative territory, erasing the brief and cautious recovery it felt at the start of the session, led by tech companies.

The movement of monetary tightening around the world and the possibility of a recession, which was highlighted by the statements of several members of the US Federal Reserve (Fed), combined with the chaos in the UK markets, confined the three major US indices in the red.

The Dow Jones Industrial Average lost 0.93% to 2,9313.26 points, while the S&P 500 fell 0.88% to 3,660.76. The Nasdaq Technology Composite Index fell 0.47% to 10,816.59 points. The ‘sell-off’ felt last weekend continued through Monday.

Investors were digesting the BoE’s statement that, hours after the pound fell to historic lows against the dollar, it confirmed it would “reluctant to change interest rates”.

In contrast, many Fed members uttered a “hard-line” tone. The Boston Central Bank President stressed the need to continue on the path of tightening monetary policy to control inflation.

Susan Collins further warns that this process will require job losses. Atlanta Federal Reserve Chairman Rafael Bostic also warned that the central bank still had a long way to go to get inflation under control.

“It feels like a new version of the West Side Story, with a gang of central bankers chasing the labor market and refusing to give up,” Mike Bailey, director of research at FBB Capital Partners, told Bloomberg.

For the expert,[Jerome] Paul and [Andrew] Bailey is trying to slow down the economy, but my sense is that employers are trying to retain as many workers as possible. “So we are on the cusp of a battle between central bankers and employers,” he added.

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In the debt market, yields on US 10-year bonds rose 21.3 basis points to 3.898%, very close to the 4% threshold, which was last crossed in 2010.