Wall Street opened lower as it awaits announcements from the Federal Reserve on interest rates in the United States
The Fed will issue a statement this afternoon and its chief Jerome Powell will hold a press conference. It is estimated that the financial entity will speed up the end of its bond purchases, but will raise rates again
Stockbrokers work at the New York Stock Exchange (USA), in a file photograph. EFE/Justin Lane
The New York Stock Exchange opened in red this Wednesday, due to uncertainty about the announcements expected by the Federal Reserve (Fed) of United States, following a two-day meeting expected to hasten the end of its pandemic-era bond purchases and signal a turnaround in its policy of interest rate hikes.< /p>
The Dow Jones index was down 0.54%, the technology-based Nasdaq was down 0.17% and the broad S&P 500 index was down 0.29% minutes after the open.
The stock markets rose and the dollar fell, with all eyes on the latest US Federal Reserve rate hike to cool inflation.
Analysts expect the Fed raises its rate by 25 basis points, which would be less aggressive than December's half-point hike, as inflation in major economies begins to ease from its highest levels in decades.
“Wall Street is slowly getting confident that this week's Fed rate hike could end up being the last in this tightening cycle,” said Edward Moya, an analyst at trade group OANDA< /b>.
The Fed meeting will end at noon on Wednesday and the market expects the Fed to raise interest rates for the seventh consecutive time, which are currently in a range from 4.25 to 4.50%. Fed Chairman Jerome Powell will hold a press conference to explain the agency's decisions.
The Federal Reserve Building in Washington, USA
After several major hikes, of three-quarters of a percentage point and half a percentage point lately, the Fed should return to a smaller and usual increase as part of its adjustment policy, of 25 basis points, the specialists estimate.
Raise a quarter of a point the The lead rate is “prudent given subdued inflation” and economic “soft activity numbers,” Steve Englander, head of US macroeconomics at Standard Chartered and a former Fed economist, summarized in an analysis note.
“I think it's time to slow down (of rate increases) without stopping it,” Christopher Waller, one of the Fed's governors, said on January 20.
The< b> US central bank raised interest rates seven times last year in a quest to slow economic growth to reduce inflation.
Investors are also keeping their eyes on upcoming business results today, as Facebook parent company Meta will announce how it did in the last quarter of 2022 after the stock market closed.
The only sector that woke up in green was health, which rose 0.8%, while the biggest losses were for finance and communications, which fell 0.55% and 0.53% respectively .
Among the 30 Dow Jones stocks, the only three companies with gains were Boeing (1.41%), Verizon (0.37%) and Walmart (0.09%), while, at the other extreme, the losses of Amgen (-3.07%) stood out , Cisco (-1.85%) and Travelers (-1.41%).
In other markets, the Texas oil rose at this time to $78.97 a barrel, the yield on the 10-year US bond fell to 3.47%, gold rose to $1,947 an ounce and the dollar per ground day against the euro, with a change of 1.0904.
(With information from EFE)