3/27/2024

Dow and S&P decline for third session straight

Scroll down

ХОЧЕШЬ УЗНАТЬ КАК ЗАРАБАТЫВАТЬ НА НОВОСТЯХ?

Проходи бесплатную регистрацию и получи консультацию эксперта, доступ к обучающему курсу и вебинарам.

Key points:

  • American stock indices fell for the third session in a row amid a short work week.
  • Tesla shares rose 4% over the week.
  • The PCE index is expected to rise 0.4% in February and 2.5% year on year.

American stock indices ended Tuesday’s trading with a decline, demonstrating a third consecutive negative session.

The Dow Jones Industrial Average lost 31.31 points (0.08%) to close at 39,282.33. The S&P 500 fell 14.61 points (0.28%) to 5,203.58. The Nasdaq Composite fell 68.77 points (0.42%) to 16,315.70.

The decline in indices occurred as investors waited for economic data for the week shortened due to the Easter holidays. This data will be key to assessing the Federal Reserve’s policy direction.

All three major US indexes hit record highs last week after the Federal Reserve maintained its forecast of three interest rate cuts this year.

Tesla shares are rising again

Tesla shares rose 2.92% after CEO Elon Musk announced a month-long trial of Full Self-Driving technology for existing and new customers in the United States. Tesla shares were up about 4% for the week, but their value is down more than 28% for the year.

Shares of the Trump Media & Technology group jumped 16.1% to close at $57.99.

Shares of Seagate Technology rose 7.38% after Morgan Stanley upgraded its rating on the computer hard drive maker from “equal weight” to “overweight.”

The S&P 500 posted 33 new 52-week highs and one new low, while the Nasdaq posted 122 new highs and 124 new lows.

Trading volume on US exchanges was 10.43 billion shares, below the average of 12.23 billion over the last 20 trading days.

What indicators are traders watching this week?

The key event of the week will be the publication of data on the personal consumption price index (PCE), which is considered an inflation indicator for the Fed. The data will be released on Friday, March 31, when US markets will be closed for Good Friday.

PCE is expected to rise 0.4% in February and 2.5% year over year. Core inflation, which excludes volatile food and energy components, is expected to increase 0.3% last month, keeping the annual rate at 2.8%.

The US economy is showing positive signs. Orders for durable industrial goods rose more than expected in February, and business equipment spending showed preliminary signs of recovery.

Markets are gradually raising expectations for the Fed to cut rates by at least 25 basis points in June. The FedWatch Tool CME shows that the probability of this event is now estimated at 70.4%, up from 59.2% last week.

ХОЧЕШЬ УЗНАТЬ КАК ЗАРАБАТЫВАТЬ НА НОВОСТЯХ?

Проходи бесплатную регистрацию и получи консультацию эксперта, доступ к обучающему курсу и вебинарам.

Заполните форму и получите бесплатную консультацию!

Add review

Name *

Review *

Recommend to read