PARIS (Reuters) – The New York Stock Exchange opened sharply lower on Friday, with investors fearing that the Federal Reserve will not lower its rates as much as expected in 2024.
In early trading, the Dow Jones index lost 220.46 points, or 0.57% to 38,238.62 points and the broader Standard & Poor’s 500 fell 0.70% to 5,162.44 points. The Nasdaq Composite lost 0.91% or 149.89 points, to 16,292.204.
Inflation for March turned out to be higher than expected on Wednesday, raising fears that price dynamics may remain more resilient than expected to rate increases.
Adding to the markets’ caution, several monetary officials declared Thursday and Friday that there was no urgency to lower rates, as the economy remained robust.
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Money markets are now counting on fewer than two rate cuts in 2024, with market expectations hovering around 47 bp of cuts, according to the Fedwatch tool.
In terms of values, JPMorgan Chase fell 3.75% after announcing that it anticipated net interest income for 2024, excluding transactions, of $89 billion, compared to $90.68 billion expected by analysts.
Wells Fargo fell 1.6% after publishing a falling profit for the first quarter, to $4.62 billion.
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(Written by Corentin Chappron)
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