Muhammad Reza Ilham Taufani, CNBC Indonesia
Market
Wednesday, 01/11/2023 21:06 IWST
Photo: Fed Chair Jerome Powell. (AFP/SAUL LOEB)
Jakarta, CNBC Indonesia – The United States (US) Wall Street stock exchange opened compactly in the green zone in trading Wednesday (1/11/2023), after facing the gloomy market in October and waiting for the release of the Fed’s interest rate which is expected to be held.
The Dow Jones opened up 0.01% at 33,057.49, while the S&P 500 rose 0.14% to 4,199.69, as did the Nasdaq which appreciated 0.30% at 12,889.30.
The rise in US stocks came after the Treasury Department detailed its big plans for future bond sales amid growing concerns about the US government’s rising debt burden. This seems to be in line with market players’ expectations.
The Treasury Department will auction $112 billion worth of debt next week, largely in line with Wall Street expectations. This announcement caused the 10-year Treasury yield to fall slightly after the announcement.
Private sector payroll data in October came in weaker than expected, ADP said on Wednesday. The U.S. labor market added 113,000 workers last month, lower than the 130,000 economists surveyed by Dow Jones expected.
The decline occurred as investors turned their attention to the Fed’s latest policy announcement. The central bank is expected to hold interest rates steady, with a more than 99% chance that rates will stay at current levels, according to the CME FedWatch Tool.
The decision is scheduled to be released in the early hours of the morning at 01.00 WIB, followed by a press conference with Chairman Jerome Powell at 01:30 WIB.
“They’re done appreciating [dengan menahan] the Fed’s interest rate. This matter [kenaikan suku bunga] certainly not finished with regards to their trade balance. That’s a form of ongoing tightening that will continue,” said Peter Boockvar, CIO of Bleakley Advisory Group on CNBC’s “Fast Money.”
“This might be a very boring statement… but, behind the scenes, [pengetatan kuantitatif] continues. This overtakes interest rate increases in terms of tightening financial conditions.”
Wall Street experienced a dismal October as the major indexes posted three straight months of decline.
The Dow and S&P 500 ended the month down 1.4% and 2.2%, respectively, marking the first three-month decline for the two indexes since March 2020. Meanwhile, the Nasdaq Composite fell 2.8% in October.
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JCI Closed, Falling 1.63% While Waiting for the Fed’s Decision
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2023-11-01 14:06:41
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