The sharp volatility in stocks was due to the Federal Reserve meeting, where, as expected by the market, the central bank kept its benchmark interest rate unchanged. However, it warned about the inflationary path in the United States.

Dollar-denominated bonds trimmed early losses on Wednesday, May 1, but failed to recover and fell, leading to an extension in the country risk. Meanwhile, Argentine stocks traded on Wall Street reversed course and ended mostly higher.

Hard currency bonds struggled to rebound and declined, with bonars leading the losses. The biggest decliners were AL30 (-0.8%), AE38 (0.6%), AL35 (-0.6%), and AL41 (0.5%). Meanwhile, Global bonds averaged a 0.2% decline.

In this context, the country risk measured by J.P. Morgan climbed 9 units (+0.7%) to 1,225 basis points.

On the international front, the Federal Reserve meeting concluded, where, as expected by the market, the central bank kept its benchmark interest rate unchanged in the current range of 5.25%-5.50%. However, it warned about the inflationary path in the United States.

On the other hand, Argentine stocks traded on the NYSE ended mostly higher. The most significant gains were seen in Transportadora de Gas (+2.9%), Telecom (+2.7%), Pampa Energía (+2.2%), Grupo Supervielle (+1.7%), and Banco Macro (+1.5%).

Conversely, the only ones that fell were Bioceres (-0.9%), Despegar (-0.8%), Loma Negra (-0.7%), Cresud (-0.5%), IRSA (-0.5%), and Edenor (-0.1%).

On the national front, on Tuesday, the Chamber of Deputies granted preliminary approval to the Bases Law and the fiscal package, which the government of Javier Milei is pushing with the intention of “liberating” the economy. Additionally, several chapters, including the privatization of state-owned enterprises and labor reform, also received the legislators’ approval after being discussed in detail.