by Stephen Culp
NEW YORK (Reuters) – The New York Stock Exchange ended very slightly higher on Monday, in a wait-and-see context, on the eve of the start of the meeting of the American Federal Reserve (Fed) which should announce the maintenance of interest rates. interest at their current level.
The Dow Jones index gained 0.02%, or 6.06 points, to 34,624.30 points.
The broader S&P-500 gained 3.21 points, or 0.07%, to 4,453.53 points.
The Nasdaq Composite advanced 1.90 points (0.01%) to 13,710.24 points.
The session saw seesaw movements, without clear direction or significant catalysts, before the three main Wall Street indices were marginally in the green.
In the eyes of Peter Tuz, president of Chase Investment Counsel, in Charlottesville, Virginia, investors were careful not to be “on the wrong side” while the comments that Fed Chairman Jerome Powell will make at the end of central bank meeting could “trigger significant moves in one direction or the other.”
The Federal Reserve reiterates that it wants to be able to show flexibility based on economic data, which seems to indicate that underlying inflation has started to fall towards the Fed’s 2% target and that the US economy remains resilient.
However, market participants remain wary of a possible “shutdown” of the American federal government while budget discussions in Congress are currently at an impasse.
While she said she did not consider that there was a risk of an economic trough, Treasury Secretary Janet Yellen warned on Monday that a partial closure of federal administrations would create “a situation that could cause a loss of momentum.” “That’s something we don’t need right now,” she added.
Financial markets are expected by the Fed to announce on Wednesday that it will maintain interest rates at their current level, which would be a second pause in the campaign of increases that began in March 2022 in order to stem galloping inflation.
The American central bank must also unveil its quarterly economic forecasts, which should fuel investors’ reflection on a soft landing or not for the American economy.
Among the main sectors of the S&P-500, energy recorded the largest increase, in the wake of the oil price curve.
On the stock side, note the 4.5% decline in the British semiconductor manufacturer Arm, just a few days after its notable debut on the stock market, after Bernstein announced it was starting its monitoring with an “underperformance” recommendation. .
( Jean Terzian)
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