Wall Street under pressure, but looking to end the week with a solid upside.
Yesterday, the US stock market closed positive, with the S&P 500 jumped 1.23% to 4,411.67; the Dow Jones Industrial Average up 417.66 points, or + 1.23% to 34,480.76, the Nasdaq Composite advanced 1.33% to 13,614.78.
US futures are, however, negative, with those on the Dow Jones accelerating downwards, yielding more than 200 points (-0.63%), to 34,143 points; those on the S&P 500 are down by 0.71% to 4,370 and those on the Nasdaq are down by 0.74% to 14,004 points.
St Louis Fed chairman James Bullard says that the Federal Reserve is expected to raise fed funds rates 12 times this year to show Americans that it is taking it seriously. the threat of inflation.
According to Bullard, rates are expected to rise above 3%.
The Fed raised fed funds rates for the first time since 2018 the day before yesterday Wednesday, March 16, to the new range between 0.25% and 0.50%, while the BoE announced the third consecutive monetary tightening , bringing UK rates to 0.75% yesterday.
However, Fed critics believe Powell & Co have moved late in fighting inflation and that the hike just announced is so small that it confirms rates at a level that still remains accommodative.
Yesterday the S&P 500 rose for the third consecutive session, gaining 4.9% on a weekly basis and thus confirming the best week since November 2020; the Dow Jones was up 4.7%, again closing the best week since November 2020, while the Nasdaq jumped 6% on a weekly basis, and is preparing to end the best week since February 2021.
Waiting for the meeting scheduled today between American President Joe Biden and Chinese President Xi Jinping: the two leaders, according to what has been announced by the White House, will discuss in particular Vladimir Putin’s invasion of Ukraine by Russia and competitiveness between the United States and China.
Today the Bank of Japan – the central bank of Japan led by Haruhiko Kuroda – announced that it had confirmed the target for short-term interest rates at -0.1%, and the target for 10-year government bond rates around zero.
The institution’s dovish attitude contrasts with those of the Federal Reserve and the Bank of England.