NEW YORK (Dow Jones)–After the previous day’s consolidation, Wall Street started the session on Wednesday with sales. The Dow Jones Index lost 0.1 percent to 38,856 points in early business, the S&P 500 and Nasdaq Composite lost 0.4 and 0.6 percent, respectively. The positive drivers are currently missing. The interest rate debate is only likely to move the US stock market again with clearer messages such as inflation and economic data, according to voices from the trade. In addition, the reporting period that provides momentum in the USA is slowly coming to an end, and some disappointments will have to be digested on Wednesday.
Interest rate cut fantasies have once again been put on hold. US Federal Reserve Chairman Neel Kashkari from the Fed branch in Minneapolis said the evening before that robust economic growth and stubborn inflation provided arguments for maintaining current interest rate levels for the foreseeable future. Since many consumers and companies are indebted at low interest rates, it could take longer for the Fed’s restrictive monetary policy to impact the real economy. Kashkari even didn’t want to completely rule out a rate hike as a next step.
“The Fed’s priced-in rate cuts in 2024 have stabilized at around 45 basis points after last week’s events (US interest rate decision and labor market data) and have so far been relatively insensitive to comments from Fed members after the most recent meeting,” says ING analyst Francesco…
