New record: Wall Street in free fall

New record: Wall Street in free fall

Wall Street does not stop falling and records new numbers. Discover what is happening in the market in this article. Keep reading if you want to discover more details. 

Wall Street does not stop falling and records new numbers. Discover what is happening in the market in this article. Keep reading if you want to discover more details. 

Stocks on Wall Street start the week sharply down. In a day in which oil plummets more than 5% after the agreement of the Organization of Petroleum Exporting Countries (OPEC) to increase its production, and in which fears grow about the Delta variant of Covid, investors they are concerned about the future of the economic recovery. In that scenario, they seek hedging in US Treasuries and cause the 10-year rate to collapse to its lowest level at the beginning of the year.

Stocks on Wall Street start the week sharply down.

As the balance sheet season continues, markets on Wall Street start the week off sharply. Both the Dow Jones, the S & P500 and the Nasdaq are trading lower, with respective declines of 2.3%, 1.85% and 1.25% respectively.

In Europe there are also significant declines. Losses reach 2.7% in the case of the Stoxx50, 2.8% for the Ibex, 3.02% for the German Dax and 3.11% for the Milan stock exchange.

With the current decline of 2.2%, the Dow Jones records its biggest daily low since October 2020, making it the worst day for stocks in 8 months.

In this context of weakness, investors disarm risk positions, such as equities, and migrate towards hedging assets. That is why the US 10-year rate is seen operating at 1.21%, the lowest level since February.

Markets on Wall Street start the week off sharply

The rate falls because US Treasury bonds rise due to investors' purchases, who are looking for a refuge in these bonds in a context of greater financial volatility due to the declines in stocks.

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