Wall Street is in the red..and the data reflects the direction of the dollar and gold. By Investing.com

Wall Street is in the red..and the data reflects the direction of the dollar and gold. By Investing.com
Wall Street is in the red..and the data reflects the direction of the dollar and gold. By Investing.com
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© Reuters.

Investing.com – US stock markets saw notable declines after the open today, after breaking news of a technical outage on the New York Stock Exchange.

Wall Street opened with noticeable declines, while the dollar reversed its declines that clouded its morning trading, to rise now after the issuance of higher-than-expected data supporting its rise. However, gold turned to losses after it was high in most of the day’s trading.

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Technical error

CNBC news agency just reported that dozens of stocks on the New York Stock Exchange stopped trading shortly after the market opened today due to an apparent technical problem.

Major stocks affected included Morgan Stanley (NYSE: ), Verizon, AT&T, Nike and McDonald’s, according to the New York Stock Exchange website.

Higher expectations data

Recently, (October) data appeared, which came above expectations, recording 46.8 points, compared to expectations of recording 46 points, while it came lower than the previous reading at 46.2 points.

Data was issued that also came below expectations, recording 46.6 points, while it recorded levels of 45 points in the previous month.

The (October) data revealed data below expectations, as it recorded 46.6 points, compared to expectations of recording 45 points, and compared to the previous reading at levels of 44.7 points.

interest forecast

The US markets are almost certain that next month will take another step towards slowing down the pace of increases, after inflation levels declined significantly in the latest reading, according to the US “CNBC” network.

Analysts at CNE say that economic indicators indicated a 94.3% probability that the US Federal Reserve will raise interest rates by 0.25 percentage points during the two-day meeting.

“If this trend continues, it will take the Fed’s benchmark borrowing rate to a target range of 4.5%-4.75%,” the analysts added.

Although the odds of a rate hike haven’t changed much over the past weeks, economic data has helped solidify the notion that after a series of blistering hikes – four consecutive increases of three-quarters of a point in 2022 – the Fed is ready to get back on its feet. And apply the brakes a little bit to calm the markets, because what happens in America does not stay in America but affects the entire world.

A lower interest environment is better

“The usual low interest rate environment is much better for the world,” said Ulrich Korner, CEO of Credit Suisse.

This comes as the President of the Federal Reserve Bank of St. Louis, James Bullard, said that he prefers that US central bankers stay on a more hawkish monetary path.

However, Patrick Harker, President of the Federal Reserve Bank of Philadelphia, said he supports a slowdown.

“I expect we will raise rates several more times this year, though, in my opinion… 25 basis point increases would be appropriate at the February meeting,” Harker added.

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Traders in the fed funds futures market expect the central bank to push interest rates to a range of 4.75%-5% by mid-summer, and then cut them by half a percentage point by the end of the year.

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However, Fed officials estimated in December that the rate could exceed 5% this year, with cuts likely not to be made until at least 2024.

markets now

Wall Street at the opening

US stock indices opened lower today with a succession of corporate earnings announcements, while chip makers fell after rising last session.

The industrial index fell 184.84 points, or 0.55 percent, to 33,444.72 points.

The index opened down 18.07 points, or 0.45 percent, to 4,001.74 points.

The Nasdaq Composite Index lost 61.48 points, or 0.54 percent, to reach 11,302.93 points at the open.

gold now

It fell during the current moments to levels near $1925 an ounce, down by 0.35%.

On the other hand, futures contracts for the yellow metal fell during these moments of today’s trading, at levels near $ 1926 an ounce, a decrease of about 0.15%.

dollar now

It rose slightly in the current moments, to now reach the levels of 102,007 points, up by 0.2%.

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