PARIS (Reuters) – American stock markets hesitated at the opening on Tuesday, with investors reassessing their rate trajectory scenarios in a context of wait-and-see behavior and falling bond yields.
In early trading, the Dow Jones index lost 35.86 points, or 0.11% to 34,060.00 points and the broader Standard & Poor’s 500 was stable at 4,366.69 points.
The Nasdaq Composite takes 0.30% or 40.75 points, to 13,559.533.
The Federal Reserve kept rates unchanged during its last monetary policy meeting on November 1, but investors, initially encouraged by the central bank’s decision, have scaled back the extent of the rate cuts of the central bank expected in 2024.
Markets now expect 84 basis points of decline for 2024, compared to more than 100 basis points expected last week, after the Fed’s decision.
Numerous statements from monetary policy makers are expected this week, with Fed Chairman Jerome Powell due to speak on Wednesday.
The President of the Minneapolis Fed, Neel Kashkari, also stressed on Monday and Tuesday that the American economy remained resistant to rate increases, which could justify raising them again.
However, US long-term rate yields are falling, which supports growth and technology stocks.
In terms of values, Uber Technologies declined by 1.87% after announcing its lowest revenue growth since 2021 and below Wall Street estimates.
*For values ​​to track, click
(Written by Corentin Chappron, edited by Kate Entringer)
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