The technology Nasdaq and the benchmark S&P 500 lead the declines because the values of the chip sector led the losses after disappointing results.
The main Wall Street indices They operate with a majority of casualties this Wednesday, May 1st as the markets weighed the new economic data before the Federal Reserve interest rate decision. He Nasdaq technology and the benchmark S&P 500 fall because the values of the sector of the chips They led the losses after disappointing results.
In that context, the Dow Jones Industrial Average climbs 89.24 points, or 0.2%, to 37,905.16 units; he S&P 500 loses 10.56 points, or 0.2%, to 5,025.13 units; and the Nasdaq Composite It lost 41.63 points, or 0.3%, to 15,616.19 units.
Helping the advancement of Dow Jones, Amazon.com outperformed other growth stocks and advanced almost 2% thanks to better-than-expected quarterly results, as interest in the artificial intelligence helped fuel the growth of cloud computing.
Six of the 11 S&P 500 sectors fellwith information technology being one of the most affected, with a drop of close to 1%.
Wall Street: Investors bet on Fed to hold rates after disappointing inflation data
The ADP national employment report showed that US private payrolls rose more than expected in Aprilwhile a separate reading showed that the The country’s manufacturing sector contracted in April. A measure of prices paid by factories for inputs approached a two-year high.
The Markets expect the Fed to maintain interest rates between 5.25%-5.50% at the end of their two-day meeting, after a series of recent disappointing inflation data will ruin bets on a rapid reduction in the cost of credit this year.
According to data from LSEGmoney markets are pricing rate cuts in 2024 at around 30 basis points (bp), up from 150 bp at the beginning of the year.
“From a perspective of greater credibility, the Federal Reserve has to recognize that the last few months have not been favorable in terms of data,” he said Russell HackmannPresident of Hackmann Wealth Partners. “While they probably aren’t going to talk explicitly about the possibility of rate hikes, they really have to point out that the The possibility of cuts is on hold until we begin to have more favorable inflation data“.
After a difficult April, May will further test the behavior of equity markets As the first quarter earnings season progresses and the outlook for companies becomes clearer, interest rates.
Source: Ambito
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