PARIS (Reuters) – The American stock markets open dispersed on Wall Street on Wednesday, driven by several company results before the Federal Reserve’s next decision.
In early trading, the Dow Jones index gained 77.27 points, or 0.20% to 38,544.58 points and the broader Standard & Poor’s 500 fell 0.46% to 4,897.92 points. The Nasdaq Composite lost 1.20%, or 185.71 points, to 15,324.188, under pressure from the decline in technology stocks.
Microsoft’s results were better than investors’ expectations, but rising AI costs are weighing on the stock.
Alphabet, for its part, announced figures lower than consensus, while the decline of Advanced Micro Devices, which announced a forecast of its turnover below expectations for the first quarter, put pressure on all stocks related to semiconductors.
Volatility in the markets should nevertheless remain limited as investors position themselves for the next meeting of the Federal Reserve.
The central bank will announce its decision on rates at 19:00 GMT, which it is expected to maintain at current levels.
Investors will nevertheless be attentive to the comments that Jerome Powell, the president of the institution, could make on the reduction of the central bank’s balance sheet. The Fed must both manage the balance sheet decline while ensuring “an abundant liquidity regime,” according to the minutes of the December meeting.
The elements that Jerome Powell could provide on the economic situation, in particular on wage tensions while the latest private employment figures were less strong than expected, are also eagerly awaited.
In terms of values, Alphabet lost 5.3%.
(Written by Corentin Chappron, edited by Zhifan Liu)
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