Nasdaq 100 stands at more than 2.5 percent as technology grows | Financial Markets News

Nasdaq’s heavy-duty technology cracked down on Wall Street amid growing fears that the United States Federal Reserve would raise interest rates.

Industry companies led the loss of shares in a series of calls from Federal Reserve officials to raise prices to prevent rising inflation from stabilizing the US economy.

Businesses also reviewed the news that the Supreme Court had barred President Joe Biden from demanding that more people be vaccinated, rejecting a law that would require 80 million workers to strike or be tested from time to time. The Nasdaq 100 sank to more than 2.5%, led by the loss of Microsoft Corp. and Tesla Inc. Chipmakers removed the profits already managed by the Taiwan Semiconductor Manufacturing Co. Boeing Co. agreed when Bloomberg News also announced that the 737 Max is due to resume commercial flights to China later this month.

Fed Governor Lael Brainard said officials could boost prices from March to ensure that inflationary pressures are addressed. The President of the Fed Bank of Philadelphia, Patrick Harker, favors the March lift and triples three or four times in 2022. His Chicago counterpart Charles Evans – who sees the same amount this year – said he would not rule out the possibility of the first such increase. two months. Richmond Fed President Thomas Barkin has said government officials could start charging interest at their March meeting if it is consistent with this.

“We are in a position where many of the economic gains have either been politically neutral or negative, and where there are a few alternatives, it makes the financial market more volatile over the next few months as we see how the data goes. Shake the Fed,” he said. Sarah Hunt, history manager for Alpine Woods Capital Investors.

Rising prices – strong economic growth – can lead investors to valuable assets, which tend to be rounded up and provide future income. This leaves the shares growing in consumer demand. The long-term gains of high-value companies may be lower due to rising inflation.

“Tech is a well-known example of an area where shares have benefited greatly from lower inflation,” said Kara Murphy, chief executive of Kestra Investment Management. “As expectations rise for prices to improve, then it makes sense that the area could be seriously damaged.”

Prices for U.S. manufacturers fell in December as two major weapons of inflation in 2021 – food and energy – fell since last month, representing relief from recent increases. At the same time, manufacturers continued to face shortages of equipment, labor shortages and operational constraints that led to higher prices last year.

Morgan Stanley customers expect financial shares to perform better this year, according to a survey at their annual meeting this week. The survey shows that 45% of respondents bet that the companies will be the best performers by 2022. It is the largest share of its share vote since 2015, the company said Thursday.

Here are the big events this week:

• The decision of the Bank of Korea policy is summarized on Friday.
• Wells Fargo, Citigroup, JPMorgan for reporting Friday.
• U.S. business publications, industrial design, University of Michigan consumer ideas, consumer goods Friday.
• New York Fed President John Williams speaks Friday.

For more on the market, read our MLIV blog.

Some of the biggest moves in the market:

Shares

• The S&P 500 fell 1.4% since 4pm New York time
• Nasdaq 100 drunk 2.6%
• Dow Jones Industrial Average fell 0.5%
• MSCI World Index drops 1%

Money

• The Bloomberg Dollar Spot Index was slightly changed
• The euro was slightly modified at $ 1.1452
• The British pound was slightly changed at $ 1,3705
• The Japanese yen rose 0.4% to 114.14 per dollar

Bond

• Yields over 10 years Treasuries dropped four points to 1.70%
• German production for 10 years dropped three points to -0.09%
• British 10-year yields dropped by three points to 1.11%

Sales

• The West Texas Intermediate crude dropped 1.4% to $ 81.46 a barrel
• Gold futures fell 0.3% to $ 1,821.20 per ounce