Dow Jones lost 350 points after Fed decision :: Investor.bg

New York Stock Exchange traders follow the decision of the Federal Reserve. Photo: AP / BTA

Wall Street indexes fell Wednesday after the Federal Reserve's decision to raise interest rates for the fourth time in 2018CNBC reported.

The central bank lowered its expectations regarding the number of increases coming next year, but not as much as expected by some market players.

The reference of blue chips Dow Jones cleared 351.98 points from its value, closing the session to its lowest value this year. Large metric S & P 500 decreased by 1.7%, while the technological measure Nasdaq delete 2.1%.

The Dow and S & P 500, which are in the correction zone, would record their worst performance in December after the Great Depression of 1931, falling more than 8% and more than 9% this month. The S & P 500 moved to red territory in 2018 by 6.3%.

The Federal Reserve has decided to raise interest rates by a quarter of a percentage point to a range of 2.25% to 2.5%, with central bankers arguing in favor of a tighter market. work and healthy economic growth.

The Fed believes that the risks to the economy are relatively balanced by committing to continue to monitor the global economy and badess the economic outlook.

Companies in several sectors have announced a decline in the price of their shares following the Fed's decision. Actions of Target, Amazon, Newell Brands and Nordstrom fell by more than 3%. Banks, including Morgan Stanley, Citigroup and Wells Fargo, lost more than 1.5% of the value of their securities. Actions of Boeing decreased by 2.9% on 3M – 2.3%, one United Steel – 7%

The yield on 10-year government bonds reached 2,798%, the lowest level since May 30th. The yield on 30-year bonds fell below 3%.

The Federal Reserve's decision to raise interest rates was announced despite warnings from US President Donald Trump Fed "not to make any other mistake". The statement from the central bank even indicates that the continued rise in interest rates would be appropriate given economic development.

Actions of FedEx decreased by more than 11% after the supplier lowered its guidance for 2019, mainly because of its international operations.

Facebook announced Wednesday a decline of more than 6% in the price of its shares, after the publication of information according to which the social network has allowed several large technology companies to have better access to consumer information.

In the evening l & # 39; euro appreciated against the dollar of 0.12% to 1.1375 dollar.

Waiting WTI American crude oil recorded an increase of more than 2%, while the increase in Brent was 0.57%. D & # 39; gold but declined 0.5% to $ 1247.30 troy ounce.