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Wall Street: Stress and Strong Reversal – April 5, 2024 at 1:43 a.m. EDT

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Wall Street experienced a rare intraday reversal (about -2% in a straight line from 7:30 p.m. to 10 p.m.) following a statement from Minneapolis Fed President Neel Kashkari: He warned: “If the Inflation continues to follow a pattern of falling rates and occasional spikes. “The question would arise as to whether rate cuts should be avoided this year” (he argued for two rate cuts in 2024 if prices continued their downward trend).

The Dow Jones fell from +0.5% to -1.35% to 38,597, the S&P500 fell from +0.75% (within 0.15% of its highs) to -1.23% to 5,147 and the Nasdaq Composite from +1.1% to -1.4%. , at 16,049.

The “Tech” index saw one of its biggest intraday swings of the year, and not “in a positive way,” following supported selloffs in AMD -8.3%, KLA -3.6%, Nvidia and Broadcom -3.4 %, Micron – 3.1%, Marvell -2.9%, Alphabet -2.8%, Qualcomm -2.4%…

As a reminder, Wall Street had gained +16% in nine weeks at the end of 2023, as seven to eight reductions in the cost of money were expected in 2024.

In a sign of the stress rocking Wall Street, the VIX, which was in “comfortable” territory at around 13.75 in the morning, rose +15% to 16.5, the strongest move since February 13 and above all the most negative since October February 13, 2023 (16.7/19.3).

On Thursday, investors also took note of a number of statistics: The U.S. trade deficit was $68.9 billion in February, up 1.9% from the previous month.

The Labor Department reported 221,000 new jobless claims in the U.S. last week, up more than 9,000 from the previous week's revised figure (212,000 instead of 210,000).

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