PARIS (Reuters) – Wall Street opened on a hesitant note on Monday as investors reassessed the Federal Reserve (Fed) terminal rate ahead of a week full of economic data.
Volumes should also remain limited as the New York Stock Exchange will only be open for half the day on Monday, and will be closed on Tuesday for Independence Day.
At the opening, the Dow Jones index lost 0.21% to 34,332.83 points, the Standard & Poor’s 500 lost 0.07% to 4,447.08 points and the Nasdaq Composite, supported by Tesla, gained 0.24 % at 13,820.11 points.
The automaker climbed 7.8% after reporting record second-quarter deliveries, beating the Wall Street consensus.
From a macroeconomic perspective, investors continue to question the trajectory of the Fed’s monetary policy.
Data released last week showed the resilience of the labor market, a strength that could help support price dynamics through wages.
Markets now expect the Fed’s terminal rate to be 34 basis points higher than the current rate, an increase of 10 basis points over one week, according to the Fedwatch Barometer.
“Markets are starting to consider two rate hikes in the United States, a crucial development,” said ING.
The data to be published this week, which includes the ISM activity indices on Monday, the first jobless claims on Thursday, and the minutes of the last Fed monetary policy meeting on Wednesday, could however change this scenario.
(Report Corentin Chapron, edited by Blandine Hénault)
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