PARIS (Reuters) – The New York Stock Exchange hesitated in early trading on Thursday, hampered by the decline in Salesforce and questions about the Federal Reserve’s monetary policy.
The Dow Jones index lost 126.66 points, or 0.38%, to 32,781.61 points and the broader Standard & Poor’s 500 fell 0.02% to 4,179 points.
The Nasdaq Composite took 0.09%, or 11.678 points, to 12,946.963.
After the approval by the House of Representatives of the bill providing for the temporary suspension of the debt ceiling of the United States, the text will continue its legislative course in the Senate.
Market watchers say the worst is now over and the bipartisan deal should be enacted by Monday, when as it stands the federal government should no longer be able to make payments.
This issue aside, investors can turn their attention to the economy and monetary policy.
The market is pricing the likelihood of the Fed’s pause in raising rates at around 70% after two of its members pleaded for it.
But the labor market is still showing signs of strength. The US private sector created 278,000 jobs last month according to the ADP survey, while the Reuters consensus gave a figure of only 170,000.
This survey comes 24 hours from the Labor Department’s much-anticipated monthly report ahead of the Federal Reserve’s monetary policy meeting in two weeks.
“Passing the debt bill is positive, but it also gives the Fed fewer opportunities to perhaps end its restrictive policy,” said Peter Cardillo, chief economist at Spartan Capital Securities.
“So a break is probably not on the cards. It’s a possibility, but with such a strong labor market and high inflation, there’s a big question mark.”
In values, Salesforce weighs on the Dow Jones by losing 4.79% after the publication of its slowest quarterly revenue growth in 13 years.
Macy’s fell 3.4% after lowering its annual sales and profit target amid inflation.
Competitor Nordstrom, on the other hand, rose 2.94% after the high-end department store chain posted a surprise first-quarter profit, thanks to better inventory control and demand from wealthy customers.
(Laetitia Volga, edited by Blandine Hénault)
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