Wall Street ended up in disarray
by Chuck Mikolajczak
The New York Stock Exchange ended in mixed order on Thursday, with less significant movements than the day before, the Dow Jones recording a slight increase in the form of a respite after the losses suffered on Wednesday following the meeting of the American Federal Reserve (Fed ), which anticipates limited monetary easing and persistent inflation in 2025.
The Dow Jones index gained 0.04%, or 15.37 points, to 42,342.24 points.
The broader S&P-500 lost 5.08 points, or 0.09%, to 5,867.08 points.
The Nasdaq Composite fell 19.92 points (0.10%) to 19,372.77 points.
Economic data published during the day supported the position adopted by the Fed, which notably highlighted on Wednesday, at the end of its two-day monetary policy meeting, the solidity of the labor market and the economy .
Weekly jobless claims in the United States fell more than expected, while growth in American gross domestic product (GDP) in the third quarter was revised upwards (3.1% compared to 2.8% in prior reading). ).
“Clearly, the Fed has sent the message that rates are not going to continue to fall if inflation does not continue to ease. We have seen inflation rebound a bit, and that is a concern for the Fed.” , commented Tim Ghriskey, senior portfolio manager at Ingalls & Snyder in New York.
“Today, as could be expected given the drop (on Wednesday) and its magnitude, we are seeing a rebound. A rebound without much conviction,” he added.
In the wake of the Fed’s press release, which reduced interest rates by 25 basis points as expected but signaled that its monetary easing would slow next year, the Dow Jones and the S&P-500 recorded a decline on Wednesday unprecedented in a session since the beginning of August, while the Nasdaq had not fallen this much since July.
Traders now expect just one rate cut, of 25 basis points, by the end of the first half of 2025. Over the year as a whole, they expect at best two cuts, one less than their forecasts last week. Like the day before, bond yields rose on Thursday, with the ten-year US Treasury bond standing at 4.594%, a nearly seven-month high.
The CBOE volatility index, considered an indicator of the level of fear on Wall Street, fell to 24.09, after reaching a peak of more than five months (27.62) on Wednesday.
Among the stocks, note the fall of Micron, which lost 16.2% after communicating quarterly forecasts lower than expectations.
text_section_type=”notes” For further information, please click on the following codes: NYSE Nasdaq Market Summary……….. 25 Highest Volumes……….. ……. Largest increases in %…………… Largest declines in %…………… Index guide American stock exchanges…. Market statistics…………………… 10-year benchmark bond………… .Guide to US Sector Indices…Guide to US Stock Markets……Dow Jones Indices…………………….. Indices S&P………… Ex-dividend values…………………… Forecasts for the Dow Jones and the S&P..
(Written by Jean Terzian)
