2023-12-20 21:28:54
A dragonfly is visible on a Wall Street sign in New York
par Stephen Culp
The New York Stock Exchange ended sharply lower on Wednesday, at the conclusion of a long hesitant session, seeing the positive dynamic of previous days interrupted in the wake of reassuring comments from the American Federal Reserve (Fed) on interest rates. interest.
The Dow Jones index fell 1.27%, or 475.92 points, to 37,082 points.
The broader S&P-500 lost 70.02 points, or 1.47%, to 4,698.35 points.
The Nasdaq Composite fell 225.28 points (1.50%) to 14,777.94 points.
Wall Street’s three main indexes fell into the red regarding an hour and a half before the close, following slight seesaw movements in the absence of real catalysts. The S&P-500 approached its closing record before falling back.
Wall Street “faced some resistance following nine days of increases” during which the indices were established at levels close to historic peaks, commented Jay Hatfield, portfolio manager at InfraCap in New York, saying he was surprised by the suddenness of the change.
“We went from hot to cold very quickly,” he declared, adding however that this decline made “sense” following the successive increases caused in particular by the press release from the American central bank last week.
At the end of its two-day monetary policy meeting, the Fed once more kept interest rates unchanged and indicated that its monetary tightening cycle was coming to an end, paving the way for a rate cut next year .
The president of the Chicago Fed, Austan Goolsbee, repeated Tuesday evening that the rate of decline in inflation, towards the 2% objective of the American central bank, would be a decisive factor in reducing interest rates.
A rate cut of 25 basis points, starting next March, is currently anticipated by financial markets, according to FedWatch data.
The American Department of Commerce must communicate its final reading of gross domestic product (GDP) in the third quarter on Thursday, then the report on personal consumption in the United States will be published on Friday, which will provide information on inflation.
All major sectors of the S&P-500 finished in the red.
On the values side, among the movements to note, the 12.1% fall of FedEx which revised downwards its annual turnover forecast. Its rival United Parcel Service lost 2.9%.
Alphabet rose 1.2% following announcing it was reviewing the structure of its division.
(French version Jean Terzian)
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