(CercleFinance.com) – The New York Stock Exchange should try to halt its downward momentum on Thursday after three consecutive sessions of decline for the Dow Jones, linked to concerns surrounding the timing of the Fed’s rate cuts.
Half an hour before the opening, the ‘futures’ contract on the Dow Jones index fell by 0.2%, but that on the Nasdaq rose by almost 0.7%, announcing a pause in the downward movement at the work since the beginning of the week.
The American stock markets seem ready to make a technical rebound after an unfavorable sequence which saw the S&P index fall back below the threshold of 4800 points and fall into the red since January 1st.
Investors nevertheless remain concerned by the uncertainties surrounding the date of the first rate cut by the American Federal Reserve following the solid economic indicators published in recent days.
If the figures for building permits and construction starts were received without emotion, the announcement of a further decline in unemployment claims last week disappointed stakeholders, who hoped that they would start to rise again.
In this context, uncertainties still persist as to the date that the Federal Reserve will choose to reduce its rates, a hope which had recently taken Wall Street to record levels.
On the bond market, the yield on ten-year Treasury bills continues to rise, above 4.12%, returning to highs of more than a month.
Money markets now only expect 53.8% to see a 25 basis point rate cut on March 20, compared to more than 70% last week.
Added to these questions are concerns about the corporate results season, which is currently mediocre, as illustrated by the lackluster performance revealed last night by the aluminum producer Alcoa.
The CBOE volatility index VIX, a barometer of risk aversion which yesterday crossed the threshold of 14.80 points signifying the end of a climate of complacency, fell this morning by 3.5 points to 14.3.
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