(Telestock) – Treasury yields rose and the stock market fell, after a positive openingwith investors weighing a series of statements from US central bankers and wondering what stance Jerome Powell will take in his Jackson Hole speech tomorrow, where he will almost certainly signal a willingness to cut rates but could be cautious about the pace of monetary easing.
Meanwhile, the president of the Federal Reserve Bank of Kansas City Jeffrey Schmid Federal Reserve Bank of Boston President Says She Wants to See More Data Before Backing Cuts Susan Collins said that “a gradual and methodical pace” is probably appropriate, while the president of the Federal Reserve Bank of Philadelphia Patrick Harker said it was on board with a September rate cut, provided the data performed as expected.
Expectations of a rate cut got a boost from minutes of the last meeting of the US central bankpublished yesterday evening. “Many noted that recent gains on inflation and increases in the unemployment rate had provided a plausible case for reducing the target range by 25 basis points at this meeting or could support such a decision,” the minutes read. “The vast majority noted that, if data continued to come in more or less as expected, it would likely be appropriate to ease policy at the next meeting.”
Operators currently see a chance 74% that the Fed will cut interest rates 25 basis points in Septemberup from 62% 24 hours ago (the probability of a 50 basis point cut has fallen from 38% to 27%), according to the CME FedWatch Tool.
On the macroeconomic front, it emerged that the unemployment benefit applications in the United States have increased slightly over the past week (initial claims rose by 4,000 to 232,000 as of August 17), indicating that the labor market is only gradually moderating. In addition, the S&P Global PMI survey indicated that U.S. economic activity remained healthy in August, although it reflected significant growth in the services sector and a strain on manufacturing.
Looking at the major wall street indicesThe Dow Jones file 0.41%; along the same lines, theS&P-500 has a depressed trend and is trading below yesterday’s levels at 5,589 points. Negative Nasdaq 100 (-0.99%); along the same lines, slightly downS&P 100 (-0.69%).
In the spotlight on the North American S&P 500 index, sector energy. At the bottom of the S&P 500 basket, significant declines are seen in the sectors informatics (-1.31%) and secondary consumer goods (-1.10%).
Among the best Blue Chips of the Dow Jones, J.P. Morgan (+0.62%), Wal-Mart (+0.61%) and American Express (+0.51%).
The worst performances, however, are recorded on Intelwhich gets -4.27%. Prey of sellers Amazonwith a decrease of 1.73%. Below par Microsoft which shows a reduction of 1.46%. Disappointing Salesforcewhich sits just below the levels of the day before.
To the top among the Wall Street tech giantsthey position themselves Paypal (+1.04%), Gilead Sciences (+0.92%), Booking Holdings (+0.73%) and Diamondback Energy (+0.67%).
The strongest drops, however, occur on Intelwhich continues the session with -4.27%. Heavy Modernwhich marks a decrease of -4.15 percentage points. Sales are concentrated on MongoDBwhich suffers a decline of 3.64%. Sales on SiriusXMRadiowhich recorded a decrease of 3.52%.