Stock market in New York: Investors cautious amid uncertainty over US interest rate changes
The Dow Jones Industrial Average (DJIA) is inching closer to its record high, reaching 45,964 points on Friday, a 0.45 percent increase from the previous day. Despite this, other indices such as the S&P 500 and the Nasdaq 100 have yet to match their record highs.
The S&P 500, meanwhile, experienced a slight decrease, falling by 0.11 percent to 6,600 points. The tech-heavy Nasdaq 100 also saw a loss, with a 0.27 percent decrease to 24,208 points.
The optimistic movement in the DJIA comes amidst a backdrop of uncertainty, as the potential for surprise is significant after investors have already factored in a substantial easing. This sentiment is shared by Benoit Anne, an expert at MFS Investment Management, who has stated that the current market situation offers a large room for surprise.
In a recent statement, Anne also expressed that data dependency and forecasts are not easily reconciled, suggesting that market movements may not always align with expectations.
In terms of monetary policy, Fed Chair Jerome Powell is expected not to provide strong forward guidance or change the monetary policy commentary in the near future, according to Anne. This could potentially lead to a risk of disappointment, as investors may have been anticipating more explicit signals about future monetary policy intentions.
Anne, however, is confident that a rate cut is imminent, as he has stated that it is practically a done deal. This prediction aligns with the general sentiment of a looming easing by the Federal Reserve.
As the stock market continues to navigate through these uncertain times, investors will be closely watching the movements of the DJIA, S&P 500, and Nasdaq 100, seeking signs of recovery or indications of further volatility.
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