The Santiago Exchange falls for the sixth consecutive session; Wall Street manages to recover in a session marked by employment
he Dow Jones rose by 0.36%, the S&P 500 gained 0.15%, and the Nasdaq Composite increased by 0.17% on the New York Stock Exchange.
While the market fears that repeated signs of economic fragility could start to impact corporate earnings, bets on a rate cut in September are also multiplying.
The Chilean stock market fell again on Tuesday, but in New York, risk appetite prevailed. Recent data from the United States renewed fears of a further economic slowdown but also reinforced expectations that the Federal Reserve might implement the much-anticipated interest rate cuts.
The Dow Jones rose by 0.36%, the S&P 500 gained 0.15%, and the Nasdaq Composite increased by 0.17% on the New York Stock Exchange, ending the day on a positive note. This was in contrast to earlier declines in European markets.
Locally, the S&P IPSA dropped by 0.24% to 6.598,36 points (preliminary), marking its sixth consecutive session of losses. The biggest decliners were Quiñenco (-1.96%), SQM-B (-1.55%), and IAM (-1.39%).
The latest economic figures from the United States prompted bond purchases, with the 10-year sovereign rate falling to its lowest level since early April, amid fears of an economic slowdown that could affect corporate earnings.
This morning, it was reported that there were 8.06 million job openings in April, the lowest figure since February 2021. This was a weaker reading than expected and came with a downward revision in the March series, following a negative survey of confidence in the manufacturing sector.
The implied probability of seeing the first Fed rate cut in September exceeded 65% in swap operations, five percentage points higher than the previous day’s record.
Energy stocks were also weighed down by the fall in oil prices. Brent crude was trading at $78 per barrel today, a four-month low, as OPEC+ indicated over the weekend that it expects to return some barrels to the market in the future, coinciding with expectations of an economic slowdown.
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