Good news can turn out to be bad news. Depending on how you look at it. In the markets, it usually happens often.
This Thursday it was learned that the US economy is moving away from recession. After growing the GDP by 0.8% in the third quarter, one tenth more than expected (3.2% in annual comparison).
The data confirm that the world's leading economy came out of the technical recession it had entered in the second quarter, when the United States contracted by 0.1%, after having observed a fall of 0.4% in the first three months of the year.
Likewise, weekly data released Thursday showed that 216,000 people filed initial claims for unemployment benefits last week. Petitions, an indicator of layoffs, have been around that level since May, a sign that confirms the strength of the labor market.
However, investors interpreted these figures as supporting the Federal Reserve's (Fed) policy of continuing to fight aggressively against inflation. Because with the economy growing and the job market robust, Jay Powell won't hesitate to reduce stimulus to the economy.
And, with higher interest rates, the more difficult it will be to finance yourself. A problem that the majority of startups and technology firms will suffer, which need resources to grow.
The result was that the Nasdaq index, where the leading companies are listed, closed with a fall of 2.2%. The Dow Jones also fell, which fell more than 300 points, which corresponded to a cut of 1%. A pullback that comes after a bounce the previous session, which confirms some volatility.
The sacred cows of the markets, Amazon, Microsoft and Apple, all lost more than 2%. Thus, Wall Street is on track to close the year with its worst result since the collapse of the Great Recession of 2008, with the S index
“It is not that we think that it is the worst year in the history of the markets: it is that it is. The data confirms this. We have never seen all the investment assets in red and only two in green, of which one has been to leave the money in the checking account and the other, the raw materials”, Victor Alvargonzález, director of strategy and founder, wrote in a note from Nextep Finance.
