by Claude Chendjou
PARIS (Reuters) – The New York Stock Exchange opened lower on Tuesday at the start of a two-day meeting of the US Federal Reserve (Fed) which could provide indications on the evolution of the trajectory of interest rates interest and the bank’s forecasts regarding the economic situation.
In early trading, the Dow Jones index gained/lost 69.92 points, or 0.2%, to 34,554.38 points and the broader Standard & Poor’s 500 fell 0.13% to 4,447.38 points. .
The Nasdaq Composite lost 0.19%, or 25.674 points, to 13,684.563.
Investors are betting that the Fed will leave the federal funds rate unchanged on Wednesday, currently in a range of 5.25%-5.50%, but uncertainties remain for the November meeting and especially on the timing of the first drop in rates.
The latest data showed core inflation moving closer to the Fed’s 2% target, but the recent surge in oil prices, now at about a ten-month high, is fueling concerns about a possible return of inflationary pressures.
“The market narrative has once again shifted from optimism about controlling inflation to fears of a re-acceleration of inflation driven by robust consumption data and rising prices oil”, notes Matthew Morgan, head of bond markets at Jupiter Asset Management.
Other data also showed that the US economy showed resilience despite the Fed’s aggressive monetary tightening campaign.
The Organization for Economic Co-operation and Development (OECD) said on Tuesday that the unexpected strength of the US economy should support global growth momentum this year, leading it to raise its forecast for global gross domestic product (GDP). for 2023 at 3%.
In terms of values, Block fell by 1.80%, in reaction to the announcement of the departure of the general director of its subsidiary Square.
Intel drops 0.44% ahead of its two-day conference with developers.
CVS Health (+1.20%) benefits from an increase in recommendation from Evercore Isi, while Starbucks (-1.73%) is penalized by the lowering of TD Cowen’s advice.
The American grocery delivery platform Instacart, a company backed by the Japanese conglomerate Softbank, is making its stock market debut in New York at an indicative price of $30 per share, valuing it at $9.9 billion. .
(Written by Claude Chendjou, edited by Blandine Hénault)
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