New York – The New York Stock Exchange closed abruptly lower on Thursday, investors, already worried about the increase in interest rates, show a renewed excitement in the face of concerns about US-US relations. Saudi Arabia and the Italian budget.
The main Wall Street index, the Dow Jones Industrial Average, fell 1.27% to 25.379.45 points.
The Nasdaq, with a strong technological color, fell 2.06% to 7,485.14 points.
The broad S & P 500 index lost 1.44% to 2,768.78 points.
"The market must juggle a lot of factors at the moment"said Tom Cahill of Ventura Wealth Management.
The last event is the cancellation by the US Treasury Secretary of his participation in the economic forum of Ryad in the full case of the disappearance of the Saudi journalist Jamal Khashoggi.
Steven Mnuchin's decision "reflects the idea that the US administration is being pushed to take a tougher stance against Saudi Arabia"an attitude"this could trigger retaliation", commented Karl Haeling from LBBW.
Gold "if the situation becomes really acute, Saudi Arabia could sell the US Treasury securities it owns, the US companies may lose opportunities, Ryad could decide to cancel the contracts with Boeing, for example"he listed.
The market players were also shaken by the comments of the President of the European Central Bank (ECB) Mario Draghi on the importance of compliance with current tax rules.
Even if he has not directly appointed Italy, Draghi "increased concerns about the budget trajectory"presented by Rome, Mr. Cahill said.
Even the European Commission in a letter to Rome denounced the budget slippage "unprecedented in the history of the Stability and Growth Pact"and he affirmed"clarifications".
Investors are also continuing to adjust to the monetary policy of the Central Bank of the United States (Fed), which recently reiterated its intention to continue the current rise in interest rates.
Wall Street brokers, which have benefited greatly from the Fed's low interest rates over the past few years, are worried that this shortfall will fade.
They are also worried that rising rates will discourage people and businesses from borrowing to buy homes, consumer goods or invest in equipment, and thus curb growth.
Some observers thought that the arrival of the earnings season would overshadow the fears of monetary policy or US relations with its major trading partners.
Gold "even the incredible results of Netflix (unveiled Tuesday evening) were not enough to increase its title in a sustainable way", Mr. Cahill emphasized."The fact that the market does not react more positively to good news shows that investors are currently on the defensive."