Now, traders are assessing when the Fed could begin effectively cutting interest rates, a move that could influence investment prices and the financial system as a whole.
Retailers are wrapping up a better-than-anticipated earnings season.
New York Stock Exchange
This Friday, the shares in Wall Street show a downward trend, while the yields of the Treasure rise, generating an environment of uncertainty among investors looking to extend another positive week on the New York Stock Exchange.
These moves occurred amid the rejection of Federal Reserve officials regarding the prospects of rate cuts for the year 2024. Thus, the S&P 500 loses 0.8%, the Dow Jones Industrial Average falls 0.1% and the Nasdaq falls 0.2%.
Mary Daly, president of the San Francisco Federal Reserve, cooled the Treasury market rally stating at a banking event in Frankfurt that the US economy is going through a period where “The risks seem high and the waters are murky.“.
Daly warned about the need for patience “bold” in the rate policy, indicating that “the dangers of deciding too quickly are real” and declaring certainty too soon could be a policy error.
Wall Street: other data analyzed by the market
Retailers are wrapping up a better-than-anticipated earnings season. lS&P 500 companies headed for first global growth in a yearaccording to FactSet data.
The Federal Reserve has already raised its main interest rate to the highest level since 2001, trying to slow down the economy and moderate financial markets to control inflation without generating a painful recession. The possibility of rate cuts in the future is being considered by operatorswhile the Fed plans to keep rates high to ensure victory in the battle against inflation.
Now, traders are assessing when the Fed could begin effectively cutting interest rates, a move that could influence investment prices and in the financial system as a whole. Despite the uncertainty, it is expected that these cuts could begin early summer 2024according to projections.
Concern about inflation has eased in recent weeks, especially due to the decline in oil prices. The barrel of US crude oil rose 1.9% on Friday, reaching $74.47 and partially recovering from the week’s initial losses, although it is still significantly below the $93 recorded at the end of September.
Source: Ambito
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