Stocks closed lower across the board on Wall Streetas traders grapple with a sharp pullback in retail spending from last month and new signals from the Federal Reserve that the interest rates They should go higher than expected.
The S&P 500 fell 2.5%, the nasdaq 3.2% and the Dow Jones 2.3 percent.
The government reported that retail sales fell 0.6% from October to November, more than expected. The pullback followed a sharp rise the previous month.
After closing Wednesday with losses after the Federal Reserve (Fed) agreed to a half-point rise in interest rates, the market maintained negative sentiment on Thursday, fearing that the rise in the price of money -which the fed has said that they will continue – produce a slowdown in the economy.
Although the increase announced by the Fed on Wednesday was what investors expected, the concern comes mainly from the signs of the us central bank that it might have to push rates higher than expected in 2023.
Fears were stoked this Thursday when some disappointing retail spending data was released in November, which suggests that the inflation it could be starting to make a dent in consumption.
All sectors of Wall Street They listed the day in red, with the greatest losses for communications companies (-2.46%) and technology companies (-2.36%).
Among the 30 Dow Jones stocks, Verizon was the only positive signature (1.55%), while the most significant drops were for amexpress (-3.57%), Intel (-2.76%) and Manzana (-2.64%).
In other markets, the Texas oil it fell to 76.88 dollars a barrel, gold fell to 1,794.7 dollars an ounce, the yield on the ten-year US bond fell to 3.463% and the dollar lost ground against the euro, with a change of 1.069.
The US Census Bureau reported this Thursday that the fall is greater than expected by the markets and analysts, who expected a reduction in consumption of 0.1 percent. In October, retail sales had risen 1.3 percent.
November is the month in which two of the biggest consumer “festivities” are celebrated in USA“black friday” Y “cyber monday”, when companies and commercial establishments offer deep discounts on their products to encourage consumer spending.
But in November, furniture sales fell 2.6%, building construction materials 2.5% and automobile sales 2.3 percent. Sales of electronics stores fell 1.5% and those of e-commerce companies such as Amazon decreased 0.9 percent.
On the other hand, sales in food and drink stores, restaurants, bars and personal care establishments increased slightly.
The drop in US retail sales comes as both inflation and interest rates remain high and suggest that the measures taken by the Federal Reserve to reduce inflationary pressure are beginning to work.
In November, inflation in the United States fell for the fifth consecutive month to 7.1%, after standing at 9.1% in June.
The markets of Europe and Asia also fell.
The Asian Development Bank lowered its forecasts for developing economies from Asia and placed the region’s growth at 4.2% this year and 4.6% in 2023. Previous forecasts had set 2022 growth at 4.3% and 2023 expansion at 4.9% .
(With information from EFE and AP)