Wall Street turns up after the release of figures – E24

At the same time, Fed members expect only one interest rate cut in 2024, and believe that inflation will decrease more slowly than expected.

The case is updated throughout the trading day.

Here’s what it looks like for some of the leading indices a few minutes past 4:00 p.m.:

• The collective index S&P 500 rises 0.21 percent
• The technology index Nasdaq is up 0.05 percent
• The Dow Jones climbs 0.32 percent

On the last trading day before Easter, the broad S&P 500 index rounded off the first quarter as the best quarter since 2019. The second quarter has started somewhat heavier. Monday ended mixed, and Tuesday with a broad decline.

On Wednesday, however, the indices turn up after figures for activity in the US service sector in March came in weaker than expected at 51.4 points against 52.6 in February. In advance, 52.8 points were expected.

PMI levels PMI levelsStands for “Purchasing Managers Index”. Every month, the PMI is prepared in more than 40 countries. It measures the flow of goods and mood among purchasing managers and is an important indicator of economic development. The figures can affect exchange rates, interest rates and stock markets. above 50 is an expression of growth, while levels below 50 indicate decline.

– The narrative of falling inflation and impending interest rate cuts from the Fed that drove the stock market’s gains in the first quarter is wavering in the second quarter, says investment manager Yung-Yu Ma at BMO Wealth Management to CNBC.

The interest rate market in doubt

Head of the Atlanta Federal Reserve, Raphael Bostic tells CNBC that he expects only one rate cut this year.

– Strong productivity, an upswing in supply chains and a robust labor market indicate that inflation will decline much more slowly than many have expected, he says.

Last month, the Fed members indicated in connection with the interest rate meeting that they expect three interest rate cuts this year.

Expectations for interest rate cuts in the US have fallen somewhat recently.

– The market is now pricing in a 63 percent probability of an interest rate cut in June, and if the Fed does not cut the key interest rate in June, an interest rate cut in July is almost fully priced in, writes senior economist Sara Midtgaard in Handelsbanken’s morning report.

– At the same time, the interest rate market is somewhat more in doubt as to whether there will be 3 or 2 interest rate cuts this year, but sees a considered probability of 3 cuts, she continues.