NEW YORK (awp international) – After a small loss the previous day, US stock markets are likely to regain something on Wednesday. Overall, however, moves should be limited before the central bankers’ meeting in Jackson Hole, which starts at the end of the week.
Around three quarters of an hour before the start of trading, the main Dow Jones Industrial index at broker IG rose 0.2 percent to 40,914 points. The tech-heavy Nasdaq 100 was also expected to be 0.2 percent higher.
Investors are looking forward to the meeting of central banks, where Fed Chairman Jerome Powell will speak on Friday. Powell may emphasize the success of the fight against inflation and prepare the markets for a rate cut in September, wrote the experts at the trading platform Etoro. “Powell is known for his cautious and conservative rhetoric, which is why he is unlikely to give a clear idea of the exact size of an interest rate cut,” he said.
According to Etoro, most market participants are probably not expecting big announcements from Powell, but rather confirmation of what they already know and what they are spending. This could still be positive for the markets as it gives them the security they need.
A review of US labor market data could provide a boost shortly after the start of trading. Experts believe that job growth has been weaker in the past than previously known. If there is a sharp revision of the number of new jobs, speculation about a significant reduction in interest rate by the Fed in September could increase by 0.50 percentage point.
Minutes of the Fed’s latest interest rate meeting will be released at the close of trading. The market will also be watching this for signs of a potential interest rate cut in September, wrote interest rate strategist Hauke Siemssen from Commerzbank.
On Wall Street, however, the focus is first on sellers. Macy’s had lowered its sales outlook, prompting shares of the department store chain to drop 9 percent in premarket US trading. On the other hand, the discount target had raised its profit outlook and also exceeded market expectations for like-for-like sales in the last quarter. This means that the shares rose 15 percent before the market.
Walmart shares rose a good one percent in premarket trading. The retail group divested itself of its interest in JD.com, as the Chinese online retailer announced. In doing so, Walmart ended an eight-year partnership that appears to have brought more or less profit in a difficult environment for Chinese tech giants. JD.com shares fell eight percent premarket.
Vector Group shares rose nearly eight percent to $15.10 before the trading session. Japanese tobacco company JT Group is offering $15 per share for Vector Group and wants to expand its position in the US by taking over the company./la/jha/
2024-08-21 12:52:30
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