Wall Street down before the Fed press release
by Chuck Mikolajczak
The New York Stock Exchange ended lower on Tuesday, with the Dow Jones recording a ninth consecutive session in the red, as investors favored caution ahead of the conclusion of the monetary policy meeting of the American Federal Reserve (Fed) .
The Dow Jones index lost 0.61%, or 267.58 points, to 43,449.90 points.
The broader S&P-500 lost 23.47 points, or 0.39%, to 6,050.61 points.
The Nasdaq Composite fell 64.83 points (0.32%) to 20,109.06 points.
Markets are expecting the Fed to announce a 25 basis point interest rate cut on Wednesday.
The American central bank must also communicate its economic forecasts, which could indicate the contours of the monetary policy that the institution will adopt next year. Comments from Fed Chairman Jerome Powell will also be scrutinized by investors.
The Fed may slow the pace of its monetary easing as the US economy remains strong and inflation persists, while the administration of US President-elect Donald Trump, who will be inaugurated on January 20, is expected to implement measures capable of promoting growth and, at the same time, causing further price increases.
“It’s kind of a standard day on the eve of a Fed decision when there’s a little bit of uncertainty. People aren’t sure how to position themselves ahead of the economic projections report and (the comments de) Powell,” said Jason Ware, chief investment officer of Albion Financial Group in Salt Lake City.
Data published during the day show that retail sales in the United States grew more than expected in November, in particular thanks to the increase in vehicle purchases, highlighting the solidity of consumption.
If the Nasdaq had established itself at a closing record on Monday and the S&P-500 is up almost 27% over the year, the Dow Jones continues to decline: this ninth consecutive session of decline constitutes its worst series since February 1978.
The CBOE Volatility Index, considered a gauge of the level of fear on Wall Street, reached 15.87 – a record since November 21 and the first time in nearly three weeks that it has settled above above 15.
Almost all of the eleven major sectors of the S&P-500 ended in the red, led by industry with a decline of 0.9%.
On the value side, note the rise in Tesla, which gained 3.6% after Mizuho significantly raised its price target for the electric vehicle manufacturer.
Pfizer jumped 4.7% after providing forecasts for 2025 in line with Wall Street 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)
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