Start-up sales on Wall Street. The words of Federal Reserve Chairman Jerome Powell still weigh heavily, stressing that interest rates may need to remain high to eliminate inflation.
The Dow Jones Industrial Average drops 0.77%, while the S&P 500 drops 0.5% and the Nasdaq Composite 0.35%. The Netflix stock scores over + 2% in the $ 228 area after the Bloomberg rumor that the streaming company is evaluating a monthly price from $ 7 to $ 9 for its publicly supported servicethat will be launched shortly. Pinduoduo jumped nearly 18% with the Chinese e-commerce company reporting better-than-expected quarterly results.
On Friday, Wall Street ran into the worst session since June (the S&P 500 and the Nasdaq Composite lost 3.4% and 3.9% respectively) thanks to the statements by Fed chairman Jerome Powell who confirmed the bank’s determination central US to stop inflation, admitting that the increase in interest rates will be in a way that will cause “some suffering” to the US economy. “Price stability is the responsibility of the Federal Reserve and serves as the foundation of our economy,” said Jerome Powell, in his Jackson Hole speech. “Without price stability, the economy doesn’t work for anyone,” he added.