Comments from the head of the Federal Reserve Bank of Minneapolis who admitted that the US central bank may not implement any interest rate cuts this year weighed on major indexes on the other side of the Atlantic.
Although they started the session on a high, Wall Street's major indexes ended the day in negative territory this Thursday, with investors weighing comments from North American Federal Reserve members on the path of monetary policy.
The S&P 500 index, a benchmark for the region, lost 1.23% to… 5,147.21 Point, the Nasdaq technology index fell 1.4% to 16,049.08 point, and the Dow Jones Industrial Average fell by 1.35% to 38,596.98 points.
Minneapolis Fed President Neel Kashkari said today that at the Fed's last meeting, it indicated two interest rate cuts this year, but if inflation remains at high levels, there may not be any cuts necessary this year.
Just this Thursday, Richmond Fed President Thomas Barkin said the central bank “has time for the clouds to pass” before starting to cut interest rates.
The statements of US central bank officials overlapped with the number of US unemployment claims last week, which rose more than expected and reached the highest number since late January. These data show less strength in the labor market.
According to data from Reuters, traders estimate the probability of the Fed cutting interest rates by 25 basis points in June at 63%. Regarding the May meeting, it is practically certain that key interest rates will remain unchanged.
Among the main market movements, Levi Strauss shares jumped more than 12% after it exceeded analysts’ estimates in terms of first-quarter results and updated its annual profit estimate upward, justifying the adjustment by cutting costs and lower discounts.
Investors are now interested in the US unemployment rate and job creation numbers for March, which will be released on Friday.
“Wannabe internet buff. Future teen idol. Hardcore zombie guru. Gamer. Avid creator. Entrepreneur. Bacon ninja.”