Tesla falls while the market awaits the interest rate decision from the Federal Reserve.
Photo: Mary Altaffer / APPPublished:
Less than 2 hours ago
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This is how the trend-setting indices on Wall Street developed at 4.30 p.m.:
- The collective index S&P 500 is up 0.17 percent
- The technology index Nasdaq is up 0.31 percent
- The Dow Jones index up 0.01 percent
The US stock market opened largely flat on Wednesday as investors await the Federal Reserve’s final interest rate decision for the year.
At 20:00 the interest rate decision from the Federal Reserve is published, followed by a press conference with central bank governor Jerome Powell half an hour later.
The market will be following Powell’s press conference closely in case there are any hints as to when interest rate cuts can be expected.
New figures, including inflation figures on Tuesday, have strengthened expectations that interest rates have peaked. The interest rate market is pricing in interest rate cuts for next year.
The ten-year government interest rate in the US is now trading at 4.16 per cent, down from 4.20 per cent on Tuesday.
Drops after recall
On Wednesday it became known that Tesla has to recall two million cars due to challenges with the self-driving system.
The reason for the recall is that the auto-steering function in the cars is not good enough to prevent misuse. The US Highway Traffic Safety Administration has it NHTSA concluded, after several years of research.
In the extreme, the problem can lead to an increased risk of crashes, according to et letter from NHTSA.
Tesla is scheduled to release a software update to fix the problems.
The electric car manufacturer’s share fell 0.7 per cent after the market opened.
Up after the release of numbers
On Tuesday, the stock markets rose after the inflation figures were published.
Price inflation in the USA came in as expected at 3.1 per cent on an annual basis in November, down slightly from the previous month. Core inflation, which excludes food and energy prices, remained as expected at 4 percent.
Chief economist Harald Magnus Andreassen at Sparebank 1 Markets points out that house rent keeps price growth up, and says that the underlying inflation has not really come down since this summer. Together with wage growth, these are two of the Fed’s challenges, he believes.
2023-12-13 14:33:24
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