Setback for interest rate prospects?
Investors take cover before price data
February 28, 2024, 11:38 p.m
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The upcoming inflation data from the USA is causing increasing caution on Wall Street in the middle of the week. The price increase in January could put a further damper on interest rate cut expectations. The US indices are heading downwards. Things are going well for the crypto industry.
One day before important price data, investors on the US stock exchanges withdrew. The Dow Jones Index the standard values closed 0.1 percent lower at 38,949 points on Wednesday. The technology-heavy one Nasdaq fell 0.6 percent to 15,947 points. The broad one S&P 500 lost 0.2 percent to 5069 points.
Tomorrow’s Personal Consumption Expenditure (PCE) Price Index, the Fed’s preferred inflation indicator, is expected to show that prices rose in January. Analysts expect an increase of 0.4 percent month-on-month. Signs of persistent inflation and a robust U.S. economy, as well as comments from some Fed officials, have already led traders to postpone bets on an initial interest rate cut from March to June. “People would definitely be nervous if the Fed saw numbers that continue to show that inflation is stubborn,” said market analyst Joe Saluzzi of Themis Trading. The question is whether the numbers are enough for the Fed to at least seriously consider the possible timing of a rate cut.
Investors were in demand Crypto stocksbecause the cyber motto Bitcoin continues to soar. For the first time since November 2021, the price rose above the $60,000 mark. Investors are hoping for a further price boost from the upcoming “halving”, the artificial shortage of Bitcoin supplies. In the wake of this, the shares of the crypto exchange became more expensive Coinbase by almost one percent.
Ebay are going up
On the other hand, the shares of Novavax down by around 27 percent. The COVID-19 vaccine manufacturer made an unexpectedly large loss at the end of the year. Shares also flew out of the depots Bumble, which fell almost 15 percent. The dating app provider expects less sales growth than hoped and is planning to cut jobs.
These were on the stockbrokers’ shopping lists Ebay. The online retailer’s shares jumped almost eight percent. eBay exceeded market expectations in the fourth quarter thanks to strong demand for used items and auto parts. The online retailer announced sales of $2.56 billion, an increase of two percent compared to the previous year. Analysts had expected $2.51 billion.
The equity securities of Applied Materials fell 2.6 percent. The US chip supplier’s China business has come into the sights of the US authorities. The semiconductor supplier received a subpoena from the US Securities and Exchange Commission in February requesting information about certain deliveries to customers in China, the company said.