In general, the market believes that the Fed will raise its target interest rate by a quarter of a percentage point at its first policy meeting of the year, after the rapid rises of 2022 to control inflation at maximums of several decades.
Money markets are betting on a rise of more than 25 basis points (bp) in March, and a terminal rate of 4.9% in June.
The latest readings have indicated that inflation is slowing, and the Federal Reserve is also reviewing data that will determine the resilience of the labor market and the pace of wage growth.
Meanwhile, ADP’s national employment report showed fewer private job additions than expected in January, while other data showed US job openings rose unexpectedly in December.
On the other hand, data from the US manufacturing sector showed a further contraction in January, as rising interest rates dampened demand for goods.
The top 11 sectors of the S&P 500 were down, with technology stocks falling the least.
Advanced Micro Devices Inc rose 7.1% as the semiconductor maker said it expects its business to improve in the second half of the year, which lifted the Philadelphia SE Semiconductor Index, which rose 2.1%.
With nearly 200 S&P 500 companies reporting fourth-quarter results, about 70% have beaten Wall Street expectations. Based on Refinitiv estimates, analysts now expect earnings for S&P 500 companies to decline 2.4% in the quarter.
Source: Ambito
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