All three largest indices of the New York Stock Exchange fell on Friday. The S&P 500 and the technology Nasdaq depreciated nearly one percent, with the Dow Jones losing less than half a percent.
The pessimistic end of last week’s trading week on Wall Street was marked by several factors that may be responsible for the deteriorating expectations of investors. They are probably most concerned about the gradual tightening of monetary policy after inflation in the United States remains high and unemployment does not fall sharply, as the US Federal Reserve envisioned.
Added to this are concerns about a possible tightening of budgetary policy, which has so far been very expansionary. Considerations are beginning to emerge about raising corporate tax rates from the current 21 to 26.5 percent. Although it was one of Joe Biden’s election promises, the markets seem to have forgotten for a while and are now amazed.
Consumer sentiment remains relatively low and, in addition, a meeting of the Federal Committee for Open Market Operations (a body of Fed members that decides on the setting of monetary policy parameters) is approaching. Nervousness in the markets is likely to increase slightly.