Federal Reserve Bank

The Dow Jones New York Stock Exchange index closed slightly positive on Wednesday (Nov. 29), while the S&P 500 and Nasdaq index closed in negative territory as inconsistent signals from Federal Reserve officials left the market uncertain about The length of the Fed’s monetary policy tightening Meanwhile, investors are keeping an eye on the release of the US Personal Consumption Expenditures (PCE) price index today. To assess inflation trends and the direction of the Fed’s interest rates.

The Dow Jones Industrial Average closed at 35,430.42 points, up 13.44 points or +0.04%, the S&P 500 Index closed at 4,550.58 points, down 4.31 points or -0.09%, and the Nasdaq Index closed at 14,258.49 points, down 23.27 points or -0.16%.

Trading conditions on the New York Stock Exchange were volatile last night. After Fed officials issued a signal that created uncertainty for the market, Mr. Thomas Barkin, president of the Richmond Fed, told CNBC yesterday that He is uncertain whether US inflation will fall to the Fed’s target of 2% and whether the Fed will need to raise interest rates again if inflation picks up.

Mr. Barkin’s opinion expressed Contrary to what Mr. Christopher Waller, a member of the Fed Board of Governors said, He is increasingly confident that the Fed’s policy interest rates are now tight enough to slow the economy. This brings inflation back to the Fed’s target level of 2%. Waller also signaled the possibility of the Fed cutting interest rates in the coming months. So that the economy can avoid recession.

“The mixed signals from Fed officials have led markets to worry that the Fed may hold interest rates high for an extended period of time,” said Tim Criskey, an analyst at Ingalls & Snyder. This is especially true at a time when the US economy is relatively strong and there is a risk that inflation will surge again. Another factor that causes the market to weaken is This comes from investors taking profits after the market’s strong rally this month.”

The US Department of Commerce released its second estimate of gross domestic product (GDP) for the 3rd quarter of 2023, stating that GDP expanded 5.2%, higher than the first estimate of 4.9% and higher than the US Department of Commerce’s forecast. Analysts at 5.0%, supported by private investment and government spending.

Among the 11 sectors included in the S&P 500 Index, real estate and financial stocks posted the strongest gains. Meanwhile, communications services stocks fell.

Technology stocks, which are more sensitive to interest rates, fell, with Microsoft down 1%, Meta Platforms down 2%, Apple down 0.5% and Alphabet down 1.6. %

General Motors (GM) shares rose 9.4% after the company announced a $10 billion stock buyback. and increasing dividend payments to shareholders to 33%

Shares of Foot Locker, a major U.S. sports equipment retailer, jumped more than 16% after the company reported third-quarter 2023 earnings per share of 30 cents, beating analysts’ expectations of 21 cents.

Investors are keeping an eye on the October release of the Personal Consumption Expenditures (PCE) price index in the US today. The PCE index is the Fed’s main measure of inflation. Because it can detect changes in consumer behavior and covers the prices of goods and services more broadly than the Consumer Price Index (CPI).

Analysts predict that the general PCE index, which includes food and energy categories, will will increase 3.1% in October year-on-year from 3.4% in September. The core PCE index, which does not include food and energy, is expected to increase 3.5% in October. . Year-on-year from 3.7% in September.