Wall Street expects further interest rate cuts and closes up – The Economic Journal


The three main indices of the New York Stock Exchange reversed the losses registered yesterday and closed the session higher on Tuesday, boosted by the expectation that the Federal Reserve (Fed) would cut the federal funds rate by 25 basis points.

This Tuesday, the S&P 500 closed to gain 0.25% to 3,005.47 points; Nasdaq technology rose 0.46% to 7,888.79 points; and industrial Dow Jones advanced 0.11% to 27,107.88 points.

Following attacks on two Saudi Arabian oil installations, leading to 50% break in the leader's production capacity in fact of the Organization of Petroleum Exporting Countries that drove the price of "black gold" soaring on Monday 20%, international exchanges registered losses.

But since then, the price of oil has been falling. At the moment, Brent, the benchmark for the European market, drops more than 7% to $ 64.14, while West Texas Intermediate, the benchmark for the US market, depreciates 6% to $ 58.91.

Market attention is now focused on the decision of the Federal Open Market Committee on the future direction of US monetary policy.

After tomorrow's meeting Wednesday, Fed chairman Jerome Powell is expected to announce further federal funds rate by 25 basis points for a range of 1.75% to 2%.



Source link