PARIS (Reuters) – The New York Stock Exchange opened lower on Monday as investors’ attention turned to the two-day meeting of the U.S. Federal Reserve (Fed) which begins on Tuesday, providing little incentive to take of risk.
About ten minutes after the first exchanges, the Dow Jones index lost 3.55 points, or 0.01%, to 33,974.53 points and the wider Standard & Poor’s 500 fell 0.31% to 4,057, 87 dots.
The Nasdaq Composite lost 0.71%, or 82.91 points, to 11,538.79.
The three major Wall Street indices, which have gained 2.5% to 11% since the start of the year, are moving on a cautious note on Monday as the Fed is expected to announce a further 25-point rate hike on Wednesday. basis, against a current range of 4.25%-4.5%.
While the expected rise is less than the 75-point hikes decided during the cycle that began in March, the markets continue to fear that the US central bank’s rates will peak above 5%, which would call into question the scenario of a a soft landing for the economy.
“The Fed will continue to favor over-cautiousness on inflation as it still remains well above the 2% target (…) we are seeing signs that inflation may come down, but that is not the case. is not low enough yet,” said Adam Sarhan, managing director of 50 Park Investments.
In values, the technology groups Apple, Amazon and Alphabet, sensitive to changes in interest rates, fell from 0.8% to 1.6% while the publication of their financial accounts is expected on Thursday.
Chinese companies listed on Wall Street Alibaba, Bilibili, Pinduoduo and JD.com lost 5.3% to 10% amid fears of tensions between Washington and Beijing. Mike McCaul, the new chairman of the US House of Representatives Foreign Affairs Committee, said on Sunday that the risks of a conflict with China over Taiwan “are very high”.
General Motors drops 2.02% after lowering Berenberg’s recommendation to ‘hold’ vs. ‘buy’ as the intermediary believes the automaker will be unable to deliver a long-term double-digit margin in a context of rising costs.
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(Written by Claude Chendjou, edited by Kate Entringer)
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