Home World News Dow falls for 3 consecutive days; The S&P 500 closed for the first time this week

Dow falls for 3 consecutive days; The S&P 500 closed for the first time this week

Dow falls for 3 consecutive days;  The S&P 500 closed for the first time this week

The Dow Jones Industrial Average fell slightly as it struggled to recover from its second-quarter slump.

The Dow Jones Industrial Average fell for the third consecutive day, falling 43.1 points, or 0.11%, to close at 39,127.14. The S&P 500 index rose 5.68 points, or 0.11%, to close at 5,211.49, its first day of gains this week. The Nasdaq index closed at 16,277.46, up 37.01 points, or 0.23%.

Intel reported operating losses from its semiconductor manufacturing business, and its share price fell more than 8%, dragging down the Dow Jones Industrial Average. Although artificial intelligence darling Huida was higher for most of the session, it ended lower, limiting the market’s gains. But sentiment was boosted by gains in big technology stocks like Netflix and Meta Platform, which rose 2.58% and 1.88% respectively.

Rising interest rates continue to impact stocks. ADP data showed that private employment rose more than expected in March.As investors are becoming worriedfedOfcut interest ratesThe path provides another indication of economic resilience.

Fed officials also poured cold water on the possibility of cutting interest rates anytime soon. Atlanta Fed President Bostic said he expects to cut interest rates only once this year, in the fourth quarter. Federal Reserve Chairman Jerome Powell said in the afternoon that more evidence was needed that inflation had subsided before lowering borrowing costs.

According to the CME FedWatch tool, as of the afternoon of the 3rd, traders believe that the probability of the Federal Reserve keeping interest rates unchanged at the May policy meeting is close to 99%; The probability of cutting interest rates at the June meeting is 62.5%, a sharp increase from 70.1% a week earlier.

U.S. The 10-year Treasury bond rate rose to its highest level for some time since November.Since October,oil pricePrices reached the most expensive levels ever.

Despite the poor start to the season, some market observers remain optimistic overall and say the stock market will recover some strength. Season 1, which ended last week, was the best single season since 2019.

“The stock market’s invincibility over the past five months is the exception, not the norm,” said Yongyu Ma, chief investment officer at BMO Wealth Management.

“It is certainly possible that the Goldilocks story of high growth and falling inflation will return in a few months,” he said. , , ,

The stock movement starting in October 2023 will initially be led by large-cap technology stocks. However, HSBC Global Research said March’s performance suggests the rally could be more diverse.

Strategist Nicole Inui wrote in the latest report: “Over the past month, the S&P 500 index has outperformed the composite index on an equal weighting basis, representing an extension of the stock market rally; expectations are that it will achieve a soft landing.” Will be done, the rally will be expanded further.”

He pointed out that after the FOMC meeting, market expectations for the Federal Reserve to cut interest rates in June have fallen from 69% to 56%.

Crude oil futures continued their recent gains as prices remained elevated due to rising geopolitical tensions and OPEC+ policies.

The West Texas Intermediate crude oil contract for May delivery rose 28 cents, or 0.33%, to close at 85.43 yuan a barrel. The Brent crude oil contract for June delivery rose 43 cents, or 0.48%, to close at 89.35 yuan a barrel.

Finance (TagstoTranslate) Federal Reserve (T) Oil Price (T) Interest Rate Cut