PARIS, Oct 31 (Reuters) – The New York Stock Exchange opened lower on Monday as the market braced for another rate hike from the U.S. Federal Reserve (Fed) this week after an October marked by weaker earnings. companies mixed.
In early trading, the Dow Jones index lost 123.52 points, or 0.38% to 32,738.28 and the broader Standard & Poor’s 500 fell 0.55% to 3,879.47.
The Nasdaq Composite lost 0.82%, or 91.4 points, to 11,011.05.
Investors’ attention is on the Fed’s policy meeting on Tuesday and Wednesday, after which the U.S. central bank could raise interest rates by 75 basis points for the fourth consecutive time to curb inflation.
“A lot of data is coming out this week and a lot of central banks are coming together,” said Kit Juckes, strategist at Societe Generale.
“We will hear from Fed Chairman (Jerome) Powell on Wednesday and his words probably mean more than his actions. If his tone, his language starts to tone down somewhat, it will continue to be positive for stocks. ,” said Peter Cardillo, economist at Spartan Capital Securities.
In the macroeconomic chapter, the publication on Friday of the monthly report on employment in the United States will provide new elements on the American economy.
In the eurozone, inflation hit a new record in October with a 10.7% year-on-year increase, suggesting further rate hikes by the European Central Bank despite the sharp slowdown economy.
In values, Apple’s stock lost 1.69% as iPhone production could drop 30% next month at one of its supplier Foxconn’s largest factories in China due to tightening restrictions related to the COVID-19 in the country.
The oil market, which retreated due to weaker than expected data published earlier in the day on industrial activity in China, dragged down Marathon Oil, PBF Energy and Halliburton, which fell between 0.4% and 3, 1%.