(CercleFinance.com) – Wall Street is expected to sink back into negative territory on Tuesday, erasing its rebound from the day before, in a context of renewed concerns about the economy which encourages investors to remain on the defensive.
Half an hour before the opening, the ‘futures’ contracts on the main New York indices lose between 0.8% and 2%, suggesting a sharp decline at the opening.
Shaken since the start of the year by the prospect of an upcoming rate hike, US equity markets are having difficulty finding their upward trajectory.
In the red for almost the entire session, the New York Stock Exchange had managed to climb into the green shortly before the close last night, allowing the Dow Jones to gain 0.3% and the Nasdaq to resume 0.6 %.
Investors should be more cautious this morning as they await the Federal Reserve’s monetary policy decision, due Wednesday evening.
While the central bank is unlikely to change rates, some investors fear that its chairman, Jerome Powell, will provide more specific guidance on the possible timing of the start of the rate-tightening cycle.
In addition to concerns about monetary policy, market participants are cautious in the face of the many results that are hitting the market at the moment.
GE is thus expected to fall 5% after posting adjusted EPS for the fourth quarter up 67% to 82 cents for revenues down 3% to 20.3 billion dollars.
Investors are also showing some nervousness before the release of Microsoft’s quarterly results, which will kick off the publications of a technology sector scrutinized very closely at this time.
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