US indices are declining
Interest rate pessimism is affecting Wall Street
April 4, 2024, 10:52 p.m
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After a weak week so far, the US stock markets are closing with sharp discounts. Interim profits cannot be retained in later trading. The interest rate skepticism of some Fed bankers is causing disillusionment.
Cautious interest rate statements from the ranks of the US Federal Reserve Bank hit the US stock markets in the evening. While the indices had been significantly higher for most of the day, they fell off in late trading. Investors also reacted to statements by US President Joe Biden, who publicly criticized Israel more sharply than ever in a telephone conversation with Prime Minister Benjamin Netanyahu over the Gaza war. Oil prices rose amid geopolitical tensions. The Dow Jones Index the standard values closed 1.4 percent lower at 38,596 points. Also the index of the technology exchange Nasdaq After a daily high of 16,467, it lost around 1.4 percent to 16,049 jobs. The broader one S&P 500 fell 1.3 percent to 5,147 points.
Minneapolis Fed Bank President Neel Kashkari said during trading that he had promised two interest rate cuts this year at the Federal Reserve’s March meeting. But if inflation continues, there may be no reduction at all this year. Richmond Fed President Thomas Barkin said the Fed has “time for the clouds on inflation to clear” before it begins cutting interest rates. The pessimism came as a surprise, as Fed Chairman Jerome Powell said on Wednesday that if the economy broadly developed as expected, a rate cut later this year could be appropriate.
Waiting for labor market data
“People were a little nervous right now because they thought the rate cuts weren’t going to happen yet, but what Powell said yesterday basically said we shouldn’t worry too much about it,” said Joe Saluzzi of the Broker Themis Trading in New Jersey said. In early trading, the higher-than-expected increase in initial jobless claims also fueled hopes that interest rates would soon fall.
The Fed is trying to cool down the hot job market by tightening monetary policy. Investors are also hoping for indications of the Fed’s actions from the US government’s official labor market report due on Friday. Helaba analysts expect that the labor market in the USA will remain in solid shape for the time being. Quick and significant interest rate cuts could therefore not be expected. The euro remained at $1.0837.
Ford in the red
The individual values were in demand Levi Strauss. The jeans supplier’s shares rose by 12.4 percent after an increase in forecasts. The background is the success of austerity measures. Also the shares of the US food company Conagra jumped 5.4 percent after strong numbers. The provider of “Bertolli” olive oil reported third-quarter adjusted profit above expectations.
ford lost 3.2 percent. The US car manufacturer is postponing the market launch of two electric models due to weak demand. He wants to focus more on hybrid vehicles, as demand for combination drives of combustion engines and electric engines is currently booming in the USA. Papers from the French fry manufacturer flew out of the depots Lamb Weston, which lost almost a fifth after a forecast reduction. The background is that customers are increasingly refraining from visiting restaurants in view of high inflation.