(CercleFinance.com) – After its rebound the day before, Wall Street should start to fall again on Wednesday morning, the remarks made yesterday by the President of the Federal Reserve now seeming to intrigue the markets.
Half an hour before the opening, the ‘futures’ contracts on the major New York indices drop between 0.4% and 0.5%, announcing a start to the session in the red.
The US equity markets ended up taking the upward path yesterday following statements deemed unsurprising by Jerome Powell at a conference in Washington.
If the boss of the Fed made it known that the process of tightening of the monetary policy could be reinforced provided that the economic situation continues to improve, these remarks did not take participants by surprise.
After having had more time to decipher his speech, investors appear a little more discouraged this morning.
At IG, we wonder if the markets have not taken too far ahead of the central banks, seeing a real ‘divergence’ between the valuation of shares and the intentions clearly displayed by Powell.
‘The Fed Chairman made it clear that there would be more ‘rate hikes’ when part of the market was convinced that March would mark the last rate hike of 25 basis points”, estimates Alexandre Baradez, head of market analysis at IG France.
Investors will seek clarification on the attitude of the central bank in the interventions planned for the day from Michael Barr, the vice-president of the Fed in charge of banking supervision, then from Christopher Waller, one of the governors of the Federal Reserve.
The gloom on Wall Street should not prevent certain companies, whose quarterly results have convinced, from standing out.
Uber is expected to rise 8% after reporting better-than-expected fourth-quarter results, with EBITDA well above expectations.
On the other hand, the agenda promises to be lightened on the macroeconomic side, since only wholesaler stocks and oil stocks will come to animate the session.
Copyright (c) 2023 CercleFinance.com. All rights reserved.