Wall Street Status Heavily Dropped With Pressure On Tech After High Inflation Measurement

US stocks fell heavily on Friday after another January inflation measure surprised on the high side It increases the fear of higher central bank rates for a longer time, it once again undermines the belief that the Federal Reserve is in control of the situation, and the market interest rates jump once again.

The broad market, as measured by the S&P 500 index, drops at 12 15, local time in New York, by 1.

2 per cent, and the main index is thus on its way to a weekly minus, moreover the third in a row, of 2 8 per cent.

However, the market is still in the plus for the year with 3 2 per cent, but it was up almost 9 per cent at the beginning of February.

On Friday, the Dow Jones also lost 1 1 per cent, while the Nasdaq lost the most with 1.

8 per cent Read also: Outlook for a significant fall in the US after new inflation figure »American stocks sell off, after the Federal Reserve's preferred inflation gauge was scorching hot, raising bets that the bank will raise interest rates at each of the next three meetings.

Some traders are even worried that it may have to take the interest rate well above 6 00 per cent,' comments Edward Moya, senior analyst at financial house Oanda.

Friday's key figure was the core price deflator, PCE Core for January, which went the wrong way in January by rising on an annual basis from 4 6 per cent.

In December To 4 7 Per Cent

The December figure was also a revision of the original announcement of inflation of 4 4 per cent.

After the announcement, trading in interest rate futures now also indicates an interest rate peak of 5 41 per cent.

from July to September, while on Thursday the market saw the interest rate reach its highest for July at 5 34 per cent.

About three weeks ago, after the Federal Reserve held its latest interest rate meeting with a rate hike of 0 25 percentage points to 4.

50-4 75 Per Cent

investors expected interest rates to peak in June at 4 90 per cent.

"We see actual as well as survey indicators going in the wrong direction So I think the market and, more importantly, people on the street are beginning to doubt whether the Federal Reserve can deliver 2.

0 percent," Mohamed Aly El-Erian, renowned economist and president of Queen's College in Cambridge, told Bloomberg News The central bank's target for price stability is core inflation of 2.

0 Per Cent Per Year

In the S&P 500, commodities and materials are the best performers with a modest 0 1pc drop, while financials lose 0.

3pc, as banks usually benefit from increased income in core business when interest rates rise Read also: A year of war: This is how Russia's shares are doing.

At the other end of the scale are the three technology-heavy growth sectors, communication services, cyclical consumption and IT, with minuses of 1 8-1.

9 per cent In the main index, there is also a heavy preponderance of red fund codes.

Only just over 60 out of the 500 companies are in green, with the utility company Edison at the top with a moderate increase of 3 4 per cent.

The big stock names, on the other hand, are all dressed in red Within IT, Apple loses 2.

2 Per Cent, While Microsoft Loses 2 2 Per Cent

Nvidia, which burst up 14 0 per cent after its accounts on Thursday, also dives 1.

7 per cent The software company Adobe is particularly hard hit here, with a minus of 7.

1 percent, when Bloomberg News learned on Thursday evening that the American competition authorities will seek to block Adobe's purchase of Figma for 20 billion dollar.

In cyclical consumption Tesla backs, which has again announced price reductions, by 3 1 per cent, while Amazon loses 3.

0 per cent Communication services are also affected, as Alphabet, Google's owner, drops 2.

1 per cent, and Meta Platforms, the company behind Facebook, drops 1 6 per cent.

At the bottom of the index is the software company Autodesk, with a minus of 11 7 per cent, as the forecast for the new financial year is below consensus at both top and bottom, thereby overshadowing a better-than-expected fourth quarter.

The concert organizer and ticket seller Live Nation Entertainment also loses 9 4 per cent.

after a fourth quarter with weak operating earnings despite better than expected sales Boeing also falls 4.

6 per cent on the News that the company has put deliveries of 787 Dreamliners on hold until the company has delivered new safety documentation to the authorities.

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