New York (AFP)
Wall Street ended down on Monday, investors feverishly entering a week that will be marked by public interventions by the boss of the US Central Bank (Fed), whose comments on interest rates are highly anticipated.
According to the final results at closing, its flagship index, the Dow Jones Industrial Average, dropped 0.46% to finish at 26,799.54 points.
The high-tech Nasdaq index fell 0.81% to close at 8,095.46 points.
The broad S & P 500 index lost 0.52% to 2,974.72 points.
Fed Chairman Jerome Powell is scheduled to speak on Wednesday and Thursday in Congress, in a context where the institution's interest rate decisions are particularly under scrutiny these days.
"We will have a pretty good idea after this hearing of what the Fed will do" at its next meeting on July 30 and 31, said Bill Lynch of Hinsdale Associates.
Absorbed in recent months by disappointing US indicators, investors had been anticipating a drastic rate cut by the US central bank for weeks at this meeting.
The hope had even propelled Wednesday the top three indexes of the odds to historic highs, powerful rate cuts rhyming with more favorable borrowing conditions for households and businesses in the United States.
But caution has replaced the euphoria on Friday markets after a monthly US employment report showing strong job creation. The elements published in this document have removed, in the eyes of the markets, the absolute need for a sharp drop in rates to revitalize the economy.
Brokers now expect almost all of them to cut rates by 25 basis points at the next meeting of the Fed.
"Do not rule out the status quo" on rates, said Bill Lynch. The market specialist also added that the minutes of the previous meeting of the Central Bank will be highly observed Wednesday.
? 2019 AFP