2024-04-02 19:02:41
The Dow Jones Industrial Average has continued its slide since the beginning of the second quarter, with a record loss of more than 460 points, following falling more than 500 points at its lowest levels. This means that the leading index had at one point fallen by regarding 800 points during the first two days of the second quarter of the current year.
In general, US stocks fell at the opening of trading on Tuesday, as investors remained concerned that the Federal Reserve might cut interest rates later than expected.
The Dow Jones Industrial Average fell 467 points, or 1.2 percent, the Standard & Poor’s 500 Index fell 1 percent, while the Nasdaq Composite Index lost 1.4 percent.
The market declines come following the Standard & Poor’s 500 index achieved its best first quarter since 2019, as the S&P 500 index rose by 10.2 percent during the first three months of the year, while the Dow Jones and Nasdaq indexes rose by 5.6 percent and 9.1 percent. percent respectively.
The sell-off was driven by the Personal Consumption Expenditures Price Index, the Fed’s preferred measure of inflation, which rose 2.5 percent in the 12 months that ended last February, more than the price increase in January.
Federal Reserve Chairman’s warning
Federal Reserve Chairman Jerome Powell warned on Friday that interest rate cuts would not be imminent, saying at an event hosted by the San Francisco Fed that “we don’t need to rush into cutting.”
This sent bond yields higher, with the yield on 10-year Treasury bonds touching their highest level this year on Tuesday, last trading at 4.36 percent.
Traders dropped their expectations for a cut in interest rates in June to regarding 62 percent from more than 70 percent the previous week, according to the CME Financial Services Group’s Fed Watch tool.
Investors are looking forward to the March jobs report scheduled for release next Friday morning, and economists polled by FactSet expect a total of 202,500 seasonally adjusted jobs to be added in March, down from an increase of 275,000 in the previous February.
(Crystal Hoare CNN)
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