Susie Setiawati, CNBC Indonesia
Market
Wednesday, 16/08/2023 21:24 WIB
Photo: United States (US) stock exchange (AP Photo/Richard Drew)
Jakarta, CNBC Indonesia – The United States (US) stock market or compact Wall Street opened lower again in trading Wednesday (16/8/2023) after falling at the close of the previous trade.
The Dow Jones index opened down 0.09% at 34,914.96, the S&P 500 opened down 0.10% at 4,433.43, the Nasdaq also opened down 0.27% at 13,593.59.
Wall Street’s main indexes opened lower in early trade Wednesday ahead of the minutes of The Federal Reserve’s July policy meeting that could hint at a rate hike, while Target (TGT) stock jumped as much as 5% on upbeat quarterly results.
The market is waiting for the outcome of the Fed’s decision to decide whether or not to raise interest rates by 25 basis points to a range of 5.25% to 5.5% at the meeting.
According to pricing in the derivatives market, traders think the Fed may have finished raising interest rates.
In addition, Wall Street’s weakening was still driven by China’s economic slowdown and concerns about the country’s financial sector weighed on investor sentiment.
New home prices in China fell for the first time this year in July, data showed on Wednesday.
China’s central bank lowered its policy rate on Tuesday, after a long run of weak numbers, but so far investors have been unimpressed with the response.
The property crisis in China was compounded by news that leading Chinese trust companies had been in arrears in paying dozens of investment products since the end of last month.
“Should things get worse, if there are more signs of contagion or financial distress in the banking sector, I think it’s inevitable that the US or other markets will see an impact,” said Janet Mui, head of market analysis at RBC Brewin Dolphin.
Disclaimer: This article is a journalistic product in the form of views from CNBC Indonesia Research. This analysis does not aim to persuade readers to buy, hold, or sell related investment products or sectors. The decision is entirely up to the reader, so we are not responsible for any losses or profits that arise from that decision.
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