Economy

Wall Street sharply lower after comments Fed boss Powell | Financial

The Dow Jones index ended 2.1 percent in the red at 30,303.17 points. The broad S&P 500 fell 2.6 percent to 3750.77 points and the Nasdaq tech exchange fell 2.8 percent to 13,112.65 points.

As expected, the US central bank kept monetary policy unchanged. In a statement, Powell said the economic recovery from the corona crisis is weakening due to the rising number of infections and new lockdowns. He says there is still a long way to go and the most important thing for the economy is that people are vaccinated against the virus.

Boeing suffered a billion-dollar loss last year and dropped 4 percent. Badly affected airlines postponed the delivery of ordered aircraft or canceled orders completely due to the crisis. Keeping the 737 MAX on the ground also played tricks on the company.

Microsoft again did good business with its cloud services in the closing quarter of last year. A new wave of the virus in many countries brought more attention to home working and education. As a result, the demand for Microsoft services rose sharply. The stock won 0.3 percent.

Starbucks lost 6.5 percent. In the past quarter, the coffee chain suffered from uncertainty in the American home market and the closures of branches in Europe, among others.

The maker of iPhones Apple lost 0.8 percent in the run-up to the numbers. Social media company Facebook fell 3.5 percent and electric car manufacturer Tesla was put down 2 percent.

Furthermore, the stock market madness around the retail chain for computer games continued GameStop. The stock jumped another 138 percent. A group of small investors united via the online platform Reddit is driving the price up. Shortsellers, who speculate on a GameStop price drop, suffer heavy losses as a result.

The euro stood at $ 1.2103, against $ 1.2107 at the close in Europe. A barrel of US oil fell 0.3 percent to $ 52.60. Brent oil became 1.1 percent cheaper at $ 55.60 a barrel.

Warning

The statement by top economists at the IMF did not help the mood either. They argue that investors seem to be betting that the many support measures by governments and central banks will solve all problems. According to them, the risks should not be underestimated and a strong correction on the stock markets is possible.

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