On Wall Street, index increases prevail. Investors are preparing for the Fed's decision

Luc Williams

The Dow Jones Industrial dropped 0.31% at the close. and amounted to 38,747.42 points. The S&P 500 gained 0.27% at the end of the day. and amounted to 5,375.32 points. The Nasdaq Composite rose 0.88%. and closed the session at 17,343.55 points. The Russell 2000 index of small-cap companies is down 0.32%. up to 2,024.92 points The VIX volatility index increases by 1.41%, to 12.92 points.

Apple shares rose 7%.

This week, the financial markets will focus on the results of the US Federal Reserve meeting and the US CPI reading for May on Wednesday. Analysts do not expect the Fed to change monetary policy parameters at its June meeting. However, investors' attention will focus on signals regarding the central bank's movements in the coming quarters. On Wednesday, after the meeting, the Fed will present new projections and a refreshed dot chart summarizing the preferences for the level of rates in this and subsequent years of all FOMC members.

According to CME's FedWatch tool, markets estimate that the probability that the first interest rate cut by the US Federal Reserve will occur in September is just over 50%. “Lower commodity prices, combined with potential corrections in the rental index, could lead to more favorable inflation data in the coming months. This improvement would be a positive development for markets and should influence the Federal Reserve's interest rate decisions. Nevertheless, at this week's meeting, we expect the scatterplot to show 1 to 2 cuts this year, with several FOMC members likely to point to no cuts,” said Jeremy Siegel, senior economist at WisdomTree. “There is a greater likelihood that the US Federal Reserve's statement will be hawkish, rather than the other way around,” said Ipek Ozkardeskaya, senior analyst at Swissquote.

Apple shares rose 7% to a record high during the session after the company failed to impress analysts with new artificial intelligence features for iPhones. Rocket Labs USA gained 0.5%. before the session after the company signed terms to receive nearly $24 million in funding under the U.S. CHIPS Act to expand production of semiconductors that power spacecraft. On the oil market, WTI contracts for July increase by 0.19%. to USD 77.88 per barrel, and August Brent futures increase by 0.23%. up to USD 81.85/b.


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