- US stock market expects moderate losses after rally
- Important data and China’s credit rating burden
- Fed interest rate meeting and ISM service index in focus
NEW YORK (dpa-AFX) – Further moderate losses are expected on the US stock market on Tuesday. The rally has stalled since the beginning of the week. However, the Dow Jones Industrial, S&P 500 and Nasdaq 100 have now each gained double-digit percentages since their October lows and are heading back towards their record highs. Now there is restraint again. According to stockbrokers, this is primarily due to important upcoming data. In addition, the rating agency Moody’s has lowered its outlook for China’s creditworthiness from “stable” to “negative”.
Around an hour before the start of trading, the broker IG estimated the Wall Street Index Dow 0.2 percent lower at 36,128 points. On Friday it rose above 36,000 points for the first time since January 2022. The Dow had its record high at the very beginning of 2022 at just under 36,953 points. The Nasdaq-100 selection index, whose record high was 16,765 points in November 2021, is off to an easier start on Tuesday, down 0.4 percent to 15,783 points.
The interest rate meeting of the US Federal Reserve next week is awaited with particular interest. After all, the optimism stemming from the latest inflation data had recently fueled the stock market rally. The market is now expecting the first interest rate cuts as early as spring 2024.
Helaba experts recalled that some central bank representatives have recently tried to curb the existing interest rate cut speculation, especially Fed Chairman Jerome Powell. “The fact that the markets are already pricing in the first interest rate cuts on both sides of the Atlantic in spring 2024 has fundamentally changed nothing. Against this background, today’s focus is on the ISM service index for the past month.” There are signs of a stabilization here, the experts continued, but they advise against setting expectations too high.
Among the individual stocks, the shares of computer game developer Take-Two Interactive could be worth a look. Rockstar Games division released the first trailer for the highly anticipated video game Grand Theft Auto VI. Analysts saw this as positive, but criticized the game’s release in 2025 and the fact that an exact date had not been given. The shares lost 2.9 percent premarket.
The investment bank Raymond James was no longer quite as euphoric as before about Lululemon. Analyst Rick Patel downgraded the sporting goods manufacturer’s stock from “Strong Buy” to “Outperform” and justified this with the stock’s recent strong run. The share fell by 0.4 percent premarket./ck/jha/
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