The markets dawn with tension this Wednesday, May 24. The European stock markets operate with falls of up to 2% after the decline in Wall Street on Tuesday and the declines in the Asian stock markets. Investors are still awaiting the current situation of the negotiations between Republicans and Democrats in the US for the debt ceiling and awaiting news from the Fed.
Wall Street points to a lower open this Wednesday, adding to the losses of the previous day, as the current negotiations on the debt ceiling fail to advancewhile investors await the publication of the minutes of the last meeting of the Federal Reserve.
The Dow Jones futures contract is down 0.3% as are S&P 500 futures and Nasdaq 100 futures. The major indices closed Tuesday’s session with heavy losses; the Dow Jones Industrials index fell 0.7%, while the broad S&P 500 fell 1.1%, and the Nasdaq Composite 1.2%.
Investors are also wary of the Federal Reserve continuing its rate-raising cycle, even after Chairman Jerome Powell hinted at a pause in June.
This follows a series of aggressive statements by various officials in the past week. These remarks continued on Tuesday, when Federal Reserve Bank of Minneapolis President Neel Kashkari said that policymakers may have to keep interest rates high for longer if inflation persists.
How the rest of the markets operate
Oil prices rose sharply on Wednesday after industry data recorded a sharp decline in US inventories, pointing to further supply shortages as the US driving season approaches.
US oil futures rose 1.4% to $74.02 a barrel, while the Brent contract rose 1.4% to $77.90 a barrel.
How the super dollar works
He dollar The US hit a new two-month high against a basket of currencies on Wednesday, buoyed by uncertainty over the US debt ceiling talks prompting investors to dive into safe haven.
The dollar index, which measures the performance of the US currency against a basket of six currencies, rose 0.25% to 103.77 points, its highest level since March 20.
Source: Ambito
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