Wide decline on Wall Street from the start – E24

Amazon falls cautiously before tonight’s figures release. On Wednesday, there will be a new interest rate decision from the Federal Reserve.

The matter is updated throughout the trading day.

This is what it looks like during opening hours:

• The Dow Jones falls 0.46 percent.
• The technology index Nasdaq falls 0.39 percent.
• The collective index S&P 500 falls 0.3 percent.

On Monday, the week began with a broad rise.

Tesla rose as much as 15.34 percent on Monday, after the company, according to anonymous sources, should have received tentative approval from the Chinese authorities for the rollout of its driving assistant system in the country. Shortly into trading on Tuesday, the share fell 2.8 percent.

Amazon presents quarterly figures after closing time on Tuesday. The share falls 0.1 percent from the start.

Tech giants Meta, Microsoft and Alphabet all released figures last week. The quarterly reports lifted the markets last week after good results.

On Thursday this week, Apple opens its accounting books.

Before the stock market opened, figures were released which showed that total compensation costs for workers rose more than expected in the first quarter.

The employment cost index increased by 1.2 percent in the quarter, which was faster than the 0.9 percent in the first quarter of 2023.

The index is followed closely by the Federal Reserve as a signal of the underlying inflation, writes CNBC.

Interest rate meeting at the Fed

Tomorrow, Wednesday, the American central bank, the Federal Reserve, will announce its interest rate decision. There is great excitement about what central bank governor Jerome Powell will signal about interest rate cuts.

Belief in interest rate cuts has steadily diminished, and expectations about the first interest rate cut have been pushed back in time.

On Friday, the new US inflation figure came in, which ended up slightly higher than expected. Price inflation in the US has calmed down from high levels, but recently the decline has stopped.

Last week there were also figures showing that the US economy grew less than expected in the first quarter, coming in at 1.6 per cent. In advance, 2.5 percent was expected, according to Bloomberg. In the previous quarter, growth was 3.4 per cent.

Federal Reserve Chairman Jerome Powell has repeatedly said that inflation is still too high. Earlier in April, Powell stated that it may take longer than expected to bring inflation down to the target.