Wall Street: rally stop and interest rate speculation

Waiting for economic data
Rally stop on Wall Street and interest rate speculation

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Will the Fed cut interest rates further in November? After the recent price increases, the question is currently troubling investors, who are acting cautiously on Monday. Economic data is expected to provide new guidance this week. Auto stocks are currently in decline, and Stellantis is collapsing significantly.

On Wall Street he has Dow Jones stagnated at the beginning of the week. The US standard value index remained almost unchanged at 42,330.15 points. The technology-heavy one Nasdaq advanced 0.4 percent to 18,189.17 points and the broad S&P 500 also increased by 0.4 percent to 5,762.48 jobs.

“The market has had a weekend to digest the data and understand that a 50 basis point cut is actually a sign that there is a problem,” said Robert Conzo of Wealth Alliance. “We should cut interest rates at a more moderate pace.” The interest rate turnaround initiated by the US Federal Reserve almost two weeks ago with a 0.5 percent interest rate cut had recently boosted prices.

Investors are now eagerly awaiting economic data so that they can better estimate whether the Fed is planning a further interest rate cut of 0.5 percent in November. A smaller increase in inflation data than expected had recently fueled investor speculation that interest rates would continue to fall.

ford ford
ford 10.56

The focus is primarily on the US employment figures on Friday and the data from the private employment agency ADP in the middle of the week. Evidence of the Fed’s interest rate path could come from US Federal Reserve Chairman Jerome Powell this evening when he speaks at a financial conference in Nashville, Tennessee.

Auto stocks are falling

The US automobile manufacturers gave the individual values ford and General Motors around three percent each after rival Stellantis had previously reduced its annual forecast. The French-Italian car maker is suffering from full inventories in the USA and weaker demand for cars worldwide. The profit targets therefore conceded Stellantisshares collapse by around 15 percent.

Stellantis Stellantis
Stellantis 12.42

The British sports car manufacturer Aston Martin also cut its forecast and justified this, among other things, with interrupted supply chains. The shares of Aston Martin fell by around 25 percent. Auto stocks were also among the biggest losers in the Dax.

In contrast, a media report about discussions with the New York hedge fund Glenview supported the shares CVS Health. The securities of the troubled US health insurer increased in price by around two percent. Glenview will meet with top CVS executives on Monday to make suggestions for improving operations, the Wall Street Journal reported.

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