Wall Street Stocks Lower as Investors Await The Fed Minutes and Economic Data

Susi Setiawati, CNBC Indonesia

Market

Wednesday, 03/01/2024 21:50 IWST

Photo: Emiten Wall Street. AP

Jakarta, CNBC Indonesia – The United States (US) Wall Street stock exchange opened lower again in early trading because investors are now focused on data and minutes from The Federal Reverse (The Fed Minutes).

In trading Wednesday (3/1/2024), the Dow Jones opened corrected 0.34% at level 37,585.64, likewise the S&P 500 opened down 0.46% at level 4,720.87, and the Nasdaq opened down 0.85% 14,639.71.

Meanwhile, in trading on Tuesday (2/1/2024), only the Dow Jones managed to close up 0.07% at 37,715.04, while the S&P 500 closed down 0.57% and the Nasdaq fell 1.63% at 14,765.94. .

US stock indexes opened lower in trading Wednesday, as investors locked in their profits after a strong 2023 and awaited economic data and minutes from the Fed’s December meeting that could provide clues on the path of interest rates.

Wall Street started the new year on a downbeat note in trading Tuesday, stalling a torrid rally in the stock market, as shares of Apple and other high-growth companies came under pressure from higher yields.

Interest rate-sensitive megacap stocks continued their decline on Wednesday, with Nvidia (NVDA.O), Apple (AAPL.O) and Tesla (TSLA.O) down between 0.5% and 1.2% before the close, as the 10-year US Treasury yield rose for the fourth straight session to 3.97%.

“The decline yesterday, today and perhaps the next few weeks, is the result of people locking in profits and reconsidering the narrative, have interest rates really fallen five or six times as much as the narrative at the end of last year seemed to suggest?” said Ken Polcari, Managing Partner at Kace Capital Advisors, as reported by Reuters.

The benchmark S&P 500 nearly hit an all-time closing high last week as investors priced in aggressive interest rate cuts this year following signs of easing inflation.

Although the Fed is widely expected to keep interest rates on hold in January, market players are pricing in a 67.2% chance of a 25 basis point rate cut in March, according to CMEgroup’s FedWatch tool.

The Fed’s December meeting minutes are scheduled to be released at 2 p.m. ET and could offer details about the central bank’s pivot toward lowering interest rates.

“The meeting minutes will show that they have discussed the possibility of starting to lower interest rates, but not at the level that the market was expecting,” Polcari said.

The U.S. central bank is “making real progress” in controlling inflation without causing major damage to the labor market, and a soft landing appears “increasingly possible,” said Richmond Fed President Thomas Barkin, a voting member of the FOMC’s interest rate-setting committee this year.

Investors also await the Institute for Supply Management’s December manufacturing activity survey and November job vacancies data due later in the day.

Disclaimer: This article is a journalistic product in the form of CNBC Indonesia Research’s views. This analysis does not aim to encourage 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 arising from this decision.

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