2024-04-01 14:28:49
The Dow Jones index continued to decline. Most recently, it fell more than 100 points, pressured by the rebound in US government bond yields.
As of 9:16 p.m. Thai time, the Dow Jones Industrial Average was at 39,615.61 points, down 191.76 points or 0.48%.
The yield on the 10-year US government bond rose above 4.3%, supported by what Christopher Waller, a member of the board of governors of the Federal Reserve (Fed), said last week. That The Fed has no need to rush to cut interest rates. Until there is confidence that inflation will adjust to a sustainable level of 2%.
In addition, Jerome Powell, Chairman of the Fed, commented. After the United States released the Personal Consumption Expenditures (PCE) price index on Friday, it was said that although the PCE index was in line with the Fed’s expectations, But the Fed will exercise caution before cutting interest rates.
“We need to see more progress on inflation before cutting rates. This is because the decision to start lowering interest rates is very important. We have to exercise caution in this regard,” said Powell.
Meanwhile, investors are selling to make a profit. After the Wall Street stock market surged in March. and 1st quarter 2024
The Dow Jones Index rose 2.1% in March and rose 5.6% in the first quarter of 2024, recording its biggest first-quarter gain since 2021. The S&P 500 Index rebounded 3.1% in the month. March and jumped 10.2% in 1Q/2024, making the biggest Q1 gain since 2019, while the Nasdaq index rose nearly 2% in March and soared 9.1% in Q1. /2567
Investors will be keeping an eye on non-farm payroll figures due to be released on Friday. The analysts predicted that Employment numbers increased by just 205,000 in March. Decelerated from 275,000 jobs in February. Meanwhile, the unemployment rate is expected to remain stable at 3.9%.
Citigroup released a report stating that The US Federal Reserve (Fed) is still likely to start cutting interest rates in June. and if the labor market slows down The Fed may cut interest rates 5 times this year.
“If economic activity proceeds as the Fed predicts, The Fed may cut interest rates three times this year.”
“But if the labor market continues to slow down We expect the Fed to cut interest rates five times this year,” the report said.
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