Wall Street Stocks Plummet, Before Fed Comments on U.S. Economy

• By William Silguiero
• (General Dispatch) – On Wednesday, most Wall Street stocks registered a significant downward trend, presumably caused by the increase in bond yields, generating a plunge in technology stocks and the global market.

• At the same time, investors are awaiting official statements from Federal Reserve Chairman Jerome Powell. He will explain the measures to be taken to combat the fall.

• The S&P 500 index was down 0.5% as of 1:05 p.m. Eastern. The Dow Jones Industrial Average rose 55 points, or 0.2%, to 32,882. The technology-heavy Nasdaq Composite was down 1.2%.

• Notably, bond yields rose sharply, after holding steady for a few weeks. As a result, the yield on the U.S. Treasury bond fluctuated from 1.62% to 1.67% over the previous day. The highest since January of last year.

• As a result, the increase in bond yields prompted a boost to banking institutions in the collection of interest commensurate with the loans.

• Brian Levitt, global market strategist at Invesco, noted that the situation the stock market is going through could be mitigated by a “recovery operation”.

• Prospectively, economists expect that Chairman Powell will be able to calm financial market nerves with the help of the central bank, without generating higher inflation.

• For their part, investors await the economic projections and the interest generated by the General Reserve in the coming days. 

Adittional Information:

Breitbart: Wall Street closes higher after Fed says will keep rates low

LA Times: Wall Street closes higher after Fed says it will keep rates low