US equities were divided in cautious trading on Wednesday, as investors waited to see if the Federal Reserve had changed its mind on how many interest-rate cuts may come this year.
The S&P 500 (^GSPC) opened flat after reaching a new all-time closing high. The Dow Jones Industrial Average (^DJI) dipped 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.2%.
Investors are treading gingerly ahead of the Fed’s policy announcement at the end of its two-day meeting, given the possibility of a shift in its attitude. While no adjustment in interest rates is expected on Wednesday afternoon, analysts are watching the “dot plot” for any changes in expectations for the coming months.
Wall Street experts believe that recent higher-than-expected inflation readings and evidence of economic momentum in the United States may lead authorities to lower interest rates in 2024, up from three before. This uncertainty might have an impact on equities and the current surge.
Bonds may potentially come under pressure following the Fed’s pronouncement at 2 p.m. ET. The yield on the 10-year Treasury (TNX) was marginally lower at roughly 4.28%, after climbing nearly 20 basis points in the previous two weeks.
On the business front, Kering (KER.PA) (PPRUY) warned that sales of its flagship brand, Gucci, fell 20% in the first quarter. Shares of the luxury firm fell as much as 15% in Paris, knocking $7.6 billion off its market worth.
S&P 500 (^GSPC)
US equities were divided in cautious trading on Wednesday, as investors waited to see if the Federal Reserve had changed its mind on how many interest-rate cuts may come this year.
The S&P 500 (^GSPC) opened flat after reaching a new all-time closing high. The Dow Jones Industrial Average (^DJI) dipped 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.2%.
The majority of the day’s heavy trading is scheduled to take place during Fed Chair Jerome Powell’s press conference, which begins at 2:30 p.m. ET.
Two days into Nvidia’s GTC conference, experts are beginning to share their thoughts on all they’ve seen and heard. Of course, the Street remains positive on Nvidia, with price targets being raised. But what interests me is how much Nvidia’s earnings predictions are beginning to grow… for 2025!
Without a sure, the bar for Nvidia is being raised significantly, to the point where you have to question if the stock will be crushed by the weight of expectations (I don’t believe we are there yet).