by Augustin Turpin
(Reuters) – The New York Stock Exchange opened lower on Tuesday, as markets caught their breath after the previous session’s rise and as investors scaled back their expectations for an anticipated cut in interest rates before the Key US inflation data due later in the week.
In early trading, the Dow Jones index lost 190.78 points, or 0.51%, to 37,492.23 points and the broader Standard & Poor’s 500 fell 0.53% to 4,738.51 points.
The Nasdaq Composite lost 0.68%, or 100.53 points, to 14,743.24.
Information on consumer and producer prices in the United States, expected on Thursday and Friday respectively, will be crucial for obtaining clues on the trajectory of the Fed’s monetary policy.
“We believe that core inflation data still suggests the need for somewhat restrictive monetary policy,” say UBS analysts.
“With inflation approaching the Fed’s 2% target, our base case scenario envisions a soft landing in which growth slows to just below trend and the Fed cuts rates by 100 basis points, starting in May.”
According to the CME Group’s FedWatch tool, markets estimate a 57% chance that the Fed will cut rates by at least 25 basis points in March, compared to nearly 64% on Monday.
In terms of values, the action of JD.Com listed in the United States fell 3.4% after the Chinese online sales group declared that its Dada Nexus unit had identified “certain suspicious practices” as part of a internal audit that could cast doubt on online advertising, marketing services revenue and unit operating costs.
Boeing remains in negative territory (-2.1%) after the American aircraft manufacturer declared having found spare parts on several MAX 9 planes grounded for inspection.
Hewlett Packard fell 8% after the Wall Street Journal reported Monday that the group was in advanced talks to buy Juniper Networks, whose stock soared 22.5%.
CrowdStrike gains 3.2% after Morgan Stanley raised its recommendation to “outperform”.
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(Writing by Augustin Turpin, edited by Kate Entringer)
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