The main stock market street indices quoted in red this Wednesdaywhile the operators evaluated the moderate comments of the president of the Federal Reserve (Fed) of USAJerome Powell and the waiting of economic data that will be published later in the week.
In this context, the Dow Jones index of industrialists dropped 0.37% to 46,121.28 points; The S&P500 lost 0.34% to 6,634.04 points and Nasdaq Composite depreciated 0.34% to 22,497.86 points
Jerome Powell’s comments incite caution
The feeling improved on Wednesday, after a negative session on Tuesday, breaking a three -sessions streak with closures in historical maximums, After Powell’s comments, who said that the Fed now faces an equilibrium exercise without a risk -free roadwhile seeking to stop persistent inflation and calm greater weakness in the labor market.
In a lunch on Warwick, Rhode Islandthe hierarch said that American economic growth has moderated this year, While the labor market has cooled. He also noted that inflation remained above the annual objective of 2% of the Fed.
The official raised a mostly cautious and data -based approach for future feat cuts, warning that inflation could rise again if the rates are cut too aggressively.
The Fed cut the rates at 25 basic points last week, and the markets expect at least two similar cuts this year. However, Powell’s comments attenuated the expectations of greater flexibility.
GDP and PCE inflation data
Investors now expect more information about the world’s largest economywith the final reading of the growth of the gross internal product of the second quarter planned for Thursday.
The report had previously shown that the US economy expanded at a solid pace in the second quarter. However, this growth is expected to be moderated in the next quarters in the face of the pressure of persistent inflation and the increase in commercial tariffs.
This week the PCE price index data will be followed closelywhich will be published on Friday. The data is the favorite inflation indicator by the Fed and probably influences the expectations of future cuts of interest rates.
It is expected that the general inflation of the PCE has remained stable, while the underlying inflation of the PCE will remain well above the annual objective of 2% of the Fed.
The outstanding actions of Wall Street
In the corporate sector, the actions of Micron Technology They dropped 2.8% despite the fact that the memory chips manufacturer registered a new growth quarter driven by the growing demand of artificial intelligence developers.
Alibaba monopolized the attention and grew 8.3% after the Chinese e -commerce giant presented its most powerful AI model to datecalled QWEN3-MAX, and promised to increase the investment in infrastructure that supports this emerging technology.
Lithium Americas It rose almost 95.5% on Wednesday after Reuters reported that the Trump administration seeks a shareholding of up to 10% in the Canadian Minera. The participation would be linked to the renegotiations of a loan from the US Department of Energy of US $ 2,260 million for the company’s Thacker Pass lithium project in Nevadaa company with General Motors.
Baidu Inc. He climbed 5.8% on Wednesday when the company announced that its autonomous transport platform, Apollo Go, received the first Dubai Autonomous Driving Test Permit along with 50 licenses for the same purpose.
The permits, granted by the Highway and Transportation Authority (RTA) of Dubai In July, they allow Apollo Go to deploy a fleet of 50 vehicles in designated areas of the Urban Dubai.
Bloom Energy It sank 10.6% after Jefferies reduced the qualification of the fuel cell company to Underperform from Hold, establishing an objective price of US $ 31. The objective price suggests a 64% drop compared to yesterday’s closure.
The significant fall occurs in a notable year for Bloom Energy, with actions that rose more than 200% year -on -year before today’s correction. The shares, which closed yesterday at $ 86.27, were negotiated down to $ 66 after the reduction.
Redcloud Holdings PLC climbed 64.7% after the company announced its incorporation into the Nvidia Connect program to improve artificial intelligence capabilities of its trading platform.
The technology company, which operates the Redai Training Platform for supply chains for high -rotation consumer goods (FMCG), will get access to Advanced Nvidia frameworks, software and experience development kits.
Bofa: The fourth quarter offers advantages
The analysts of Bank of America They affirmed in a note on Wednesday that history suggests that investors should expect the final stretch of 2025.
According to the bank, “the fourth quarter is usually the best moment of the year” for the variable income, while the ten main indexes exhibit strong positive yields. Bafa stressed that the S&P 500 has averaged a gain of 2.84% in the quarter.
Source: Ambito
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