U.S. stock indices fall amid caution ahead of key data, Federal Reserve meeting


(MENAFN) Yesterday, US stock indices experienced declines as investors adopted a cautious stance in anticipation of the release of crucial inflation data and the upcoming Federal Reserve meeting. Market participants sought clues to gauge the US central bank's stance on monetary policy easing for the remainder of the year. The Dow Jones Industrial Average dropped 14.09 points, or 0.04 percent, closing at 38,784.90 points, while the Standard & Poor's 500 index fell by 5.77 points, or 0.11 percent, ending the session at 5,341.22 points.

The nasdaq Composite Index remained unchanged at 17,083.45 points. Analysts such as Macquarie's David Doyle expressed mixed sentiments regarding the Federal Open Market Committee's (FOMC) policy outlook. While some indicators lean towards a dovish stance, such as rising unemployment, others, like the strong non-farm payrolls report, suggest robust labor demand growth. Doyle's base forecast suggests that interest rate cuts may commence in 2025.

In Europe, stock markets experienced a downturn following French President Emmanuel Macron's announcement of early elections after a significant loss in the European Parliament elections to the far right. This development heightened traders' concerns regarding interest rate expectations, leading to a decline in European stocks.

The CAC 40 index, representing French stocks, witnessed a notable drop of 1.8 percent, reaching its lowest levels in more than three months. Shares of prominent banks such as BNP Paribas, Société Générale, and Credit Agricole recorded declines ranging between 3.8 percent and 5.5 percent. The uncertainty surrounding the political landscape in Europe added to investor caution, contributing to the overall negative sentiment in the European markets. 

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