Wall Street cuts two-week bullish streak and falls after the holiday

Wall Street cuts two-week bullish streak and falls after the holiday
September 5, 2023 – 12:11

The markets face a quieter week, in which the results season is coming to an end.


Wall Street starts the week down after the long weekend, awaiting a key meeting for investors at the Federal Reserve in the middle of the current month.

The S&P 500 loses 0.3%. The index comes from its second weekly rise. the dow It is down 63 points, or 0.2%, and the Nasdaq is down 0.3%. Markets prepare for a week quieterin which company earnings reports are coming to an end and only a trickle of economic reports expected government, including data on manufacturing, layoffs and trade. DocuSign, GameStop, Dave & Buster’s and Kroger will present their most recent quarterly financial results this week.

Last Friday, the S&P 500 rose 0.2%after registering its first monthly loss since February, as US jobs figures suggested the job market may be cooling off. This fueled hopes that the Federal Reserve will moderate interest rate hikes to curb inflation.

The report also showed that the unemployment rate increased from 3.5% to 3.8%. This is the highest level since February 2022although it is still low in historical terms.

The strength of hiring and consumer spending has helped avoid the recession that analysts expected sometime in 2023. But they also make it harder for the central bank to control inflation by pushing up wages and prices.

Wall Street: awaiting the Fed’s decision

Market fears that the Federal Reserve have to keep the interest rates higher for longer – following reports showing that the US economye remains remarkably resilient– led the market to regress in August.

This week, DocuSign, GameStop, Dave & Buster’s and Kroger report their most recent quarterly financial results. The corporate benefits of this quarter have been nuancedwith many companies having exceeded modest expectations while warning of a slowdown in sales and profits in the coming quarters.

Source: Ambito

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