North American stock markets closed in negative territory, on a day when investors were adjusting their expectations for an interest rate cut by the US Federal Reserve. Enthusiasm about the decline as early as March gave stocks strength at the end of 2023, but investors are now starting to consider whether they have gone too far.

Federal Reserve Governor Christopher Waller said Tuesday that the central bank should maintain a cautious and methodical approach as it begins to cut interest rates. Although he did not deliver a “tough” speech, his words were also not in favor of the sharp decline that the market had assumed – about six cuts this year.

The Standard & Poor's 500 Index, the region's benchmark, fell 0.39% to 4,765.39 points, the Dow Jones Industrial Average fell 0.62% to 37,361.12 points, and the Nasdaq technology index fell 0.19% to 14,944.35 points.

Among the key moves, Morgan Stanley lost 4.16% on the day it presented results and warned that margins at its wealth management unit were expected to continue to decline.

Boeing sank 7.89%, on a day that saw Wells Fargo cut its recommendation from “overweight” to “equal weight.”

Apple also closed trading with losses, after it fell by 1.23% on the day the Supreme Court refused to pursue its appeal in a case related to the “App Store.”

“Thanks to today’s information, we believe the Fed intends to cut interest rates three times this year — and will cut them further only if the economic situation deteriorates and unemployment rises to 4.5-5%,” said Peter Boockvar, author of the Book report. In statements to Bloomberg.