(News Bulletin 247) – The New York Stock Exchange sank into the red on Tuesday, investors staying away from risky assets on the eve of the highly anticipated announcements from the Federal Reserve.
At the end of the morning, the Dow Jones dropped nearly 1.5% to 33,543.9 points while the Nasdaq Composite lost 1.4% to 12,043 points.
After a good first quarter, Wall Street has been showing the first signs of excitement since the beginning of April, with some analysts warning of ‘oversold’ indicators and flagging volatility.
The technical configuration also changed last week, since the S&P 500 index suffered for the first time since March 2022 a daily decline of more than 1%.
‘This challenges the short-term trend, paving the way for a dip in the 50-day moving average which stands at 4033 points, which could possibly be followed by a return towards 3963 points, the moving average 200 days’, points out a trader.
As the US economy holds up, but also gives cause for concern, the Fed’s statement, due out tomorrow, will be watched closely by investors.
The US central bank, whose monetary policy committee begins meeting two days today, is expected to announce a final rate hike of 25 basis points and signal a pause in its monetary tightening cycle.
‘Powell’s speech will be, as usual, the key to market perception’, recall the teams of La Financière de l’Echiquier.
Investors are also waiting to find out if technology companies, starting with Apple, whose accounts are due Thursday, have any other good surprises in store.
Uber Technologies climbed 8% after reporting quarterly cash flow well above market estimates this morning and said it expected further improvement in profitability in the second quarter.
Pfizer fell 0.8% after reporting lower quarterly results amid falling sales of its Covid-19-related products.
DuPont is down more than 9% after beating consensus in the first quarter but lowering its full-year earnings forecast.
To date, 53% of S&P 500 companies have published their results and nearly 79% of them have exceeded Wall Street expectations in terms of earnings.
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