US stocks’ downward trend continues with Wall Street losing momentum
(MENAFN) The downward trend in U.S. stocks continued for the second consecutive day, with Wall Street losing momentum. This decline was attributed to diminishing investor hopes for a potential interest rate cut in the United States. The Federal Reserve is currently in a "blackout period," restricting comments from central bank officials in anticipation of upcoming job data.
The Dow Jones Industrial Average experienced a 0.4 percent drop, equivalent to a 170-point decrease, while the S&P 500 saw a decline of approximately 0.33 percent, translating to a 20-point decrease. Surprisingly, the Nasdaq Composite Index managed to maintain stability amidst the market turmoil.
Analysts are advising investors to temper their expectations for stock market progress throughout 2024. Jason Heller, Senior Executive Vice President at Coastal Wealth, emphasized the lack of bullish catalysts for stocks. He pointed to factors such as rising interest rates, consumer weakness, and diluted earnings expectations as key contributors to the subdued market sentiment. Heller predicts that stocks are likely to remain within a narrow trading range in the near future.
With the Federal Reserve imposing a blackout period, investors are left with limited insights from central bank officials in the lead-up to the next policy meeting. The prevailing uncertainty regarding interest rates and the cautious stance adopted by the Fed have further contributed to the prevailing apprehension in the stock market.
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