New York: Wall Street Stock returned under pressure Thursday after two sessions, with stock diving technology in expectations for higher interest rates.
With Federal Reserve officials vowed to focus on inflation as a top priority, investors quickly adjust their estimates.
Art Hogan, Head of Strategy at the National Securities, said that many growth-oriented technology stocks are still considered too high, given the hope that the Fed can raise interest rates several times in 2021.
“We see some significant rotation of Tech,” Hogan said, “Hogan , “Paying attention to” clearly more Fed Hawkish “compared to before in a pandemic.
US stocks opened higher, but then stumbled into red.
The three main indices ended lower, with nasdaq rich technology fell at most at 2.5 percent.
The Wall Street decline came after the exchange in Europe pushed higher.
Interest rates and inflation “will obey investors on their toes”, said the Craig Erlam market analyst, which added that “the underlying anxiety in the market …
can make some price actions that are easily changed for the future”.
“It seems that investors are on the edge of what they will tolerate and will not need much to encourage them to the edge,” he said.
On Wednesday, data showed US consumer prices in 2021 up with the fastest speed in four decades.
However, CPI growth slowed in December from November, showing a surge in prices may approach its peak.
The wholesale prices for US goods and services rather subside in December, but still surged 9.7 percent for this year, the latest pressure indications at prices.
Many economists expect three interest rate hikes this year, but St Louis’s Federal Bank President James Bullard said Wednesday policy makers might have to be more aggressive and up four times.
Another Fed President, Raphael Bostik Atlanta, said he was open to hiking in early March.
Hogan said the upcoming income period could provide a catalyst to shift the recent pattern of trade, which had seen technology stocks generally under pressure.
Large banks including JPMorgan Chase are set to report results on Friday.
Among each company, Delta Air Lines rose 2.1 percent due to reporting the fourth quarter loss but indicating it expects a strong springbackbackbackback on the way if the infection of the omicron variant decreases.
Nasdaq was hammered as US stocks continued sales
