Wall Street's prices crumble due to insufficient momentum.
American investors are once again disappointed by the Federal Reserve, as they see no sign of an initial interest rate cut. This lack of clarity has led to declining buying interest, and it's reflected in the prices of major indices.
US stock markets took a hit at the end of Wednesday. Wall Street's prices tumbled during trading due to a lack of momentum and worsened after the minutes from the Fed's latest meeting were released. Investors were hoping for hints about when the Fed might reduce rates for the first time and what would follow. However, these hints never came.
However, the minutes revealed that Fed representatives still believe price pressure will ease - albeit slowly. The Dow Jones Blue Chip index dropped 0.5 percent to 39,671 points. The Nasdaq dipped 0.2 percent to 16,801 points, and the broader S&P 500 fell 0.3 percent to 5,307 points.
An eventual easing of monetary policy could also affect US fuel consumption, causing oil prices to slide for the third consecutive day. North Sea Brent crude dipped 1.5 percent to $81.67 per barrel (159 liters), while US WTI crude fell 1.7 percent to $77.33. There was also apprehension ahead of Nvidia's earnings, which were set to be presented after the market closed. Most analysts agreed that Nvidia, a leading AI chipmaker, would need to blow past expectations in order to please investors.
BuzzFeed soars
Individual stocks created a stir, with BuzzFeed in the spotlight. US politician Vivek Ramaswamy announced investing in the media company, causing a surge in its share price. Shares in the owner of one of the most popular news portals in the English-speaking world jumped by 20.4 percent. Target, on the other hand, lost eight percent amid declining profits and a gloomy outlook for the first quarter. In contrast to Walmart, which recently scored with its delivery service success and optimistic forecast, Target underperformed with both its numbers and expectations. Lululemon also faced a setback, as its head of product left the company without being replaced, causing shares to fall by 7.2 percent.
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Despite the challenges in the broader market, Nvidia managed to exceed expectations in its earnings report, leading to a surge in its stock price on Wall Street. In contrast, the federal interest rate decision and the lack of clear indication of rate cuts disappointed investors, causing major indices like the Dow Jones, Nasdaq, and S&P 500 to decline.
Source: www.ntv.de
