Wall Street: Wall Street opens lower on the eve of the Fed meeting
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PARIS (Reuters) – The New York Stock Exchange opened lower on Monday on the eve of the U.S. Federal Reserve’s (Fed) two-day monetary policy meeting, where another sharp hike in interest rates is expected.

In early trading, the Dow Jones index lost 192.13 points, or 0.62%, to 30,630.29 points and the broader Standard & Poor’s 500 fell 0.56% to 3,851.47 points.

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The Nasdaq Composite lost 0.48%, or 54.97 points, to 11,393.43.

The three indices, which had already suffered on Friday from the FedEx warning, considered a reliable barometer of the global economy, and from the gloomy forecasts of the World Bank, the IMF and Goldman Sachs on the evolution of the economy, n have no catalyst on the agenda of the day to offer them support.

“Markets will be looking for direction until the Fed meeting, there won’t be much trading in equities until then,” predicted Christopher Grisanti, equity strategist at MAI Capital Management.

The CBOE volatility index, also called the fear index, is moving close to a peak of more than two months at 27.45 points (+4.37%).

Money markets are pricing in a Fed rate hike of at least 75 points on Wednesday and the probability of a 100 point hike is estimated at 20% according to CME Group’s Fedwatch Barometer.

In addition to the United States, further monetary tightening is also expected in Great Britain and Switzerland, while Japan could opt for the status quo in the monetary policy decisions scheduled for Thursday.

In values, the prospect of a rate hike weighs on the technology compartment, whose index drops 0.6%.

Microsoft, Amazon, Alphabet, Apple and Tesla respectively yield 0.96%, 0.38%, 0.74% and 0.19%.

Oil groups such as ExxonMobil, Occidental Petroleum, Callon Petroleum and Schlumberger fell 0.80% to 3.10%, in the wake of the decline in crude prices, penalized by the strength of the dollar and fears over global demand.

(Written by Claude Chendjou, edited by Kate Entringer)

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