Markets Fluctuate as Fed Decision Looms, Big Tech Stumbles

New York, January 31, 2024 - PRISM MarketView - As Wall Street anticipates the Federal Reserve’s decision, a mix of events has stirred the markets. Major tech companies, including Microsoft Corp.($MSFT), Alphabet Inc.($GOOG), and Advanced Micro Devices Inc.($AMD), have seen a downturn, failing to meet the high expectations set around artificial intelligence developments. This resulted in the S&P 500’s influential tech group facing significant losses on Wednesday. Despite a decrease in bond yields, the tech sector couldn’t rebound, with the Nasdaq 100 dropping about 1.5% and the S&P 500’s January gains being trimmed.

Meanwhile, the U.S. Treasury plans to increase its quarterly debt sale but doesn’t foresee further increases. Additionally, the ADP employment report showed fewer jobs added than expected. In banking, regional lenders initially faced concerns, with the KBW Bank Index and a regional bank measure experiencing declines, though they partially recovered later in the session.

The Federal Open Market Committee is expected to maintain rates between 5.25% and 5.5% at the conclusion of its two-day meeting, with Federal Reserve Chair Jerome Powell scheduled to address the public shortly after. While inflation shows signs of decline, the Fed signals caution against a quick rate cut due to a robust labor market and strong economic growth.

In corporate news, Boeing Co. chose not to provide 2024 financial guidance, focusing instead on addressing recent quality issues. Mastercard Inc (MA.NE). reported better-than-expected fourth-quarter earnings, despite a rise in operating expenses.

Biogen Inc. ($BIIB), announced the discontinuation of its Alzheimer’s drug Aduhelm, and Cigna Group (CI) , agreed to sell its Medicare business for $3.3 billion. Additionally, Saudi Arabia is reportedly considering a follow-on offering in Aramco, potentially one of the largest recent share sales.

In the broader market, the S&P 500 fell 0.8%, the Dow Jones rose slightly, and the Stoxx Europe 600 saw a modest increase. Currency and cryptocurrency markets showed varied movements, with the Bloomberg Dollar Spot Index falling and Bitcoin experiencing a slight decline. Bond yields decreased across the board, and commodities like crude oil and gold saw mixed movements.

Media Contact
Company Name: Prism MarketView
Email: info@prismmarketview.com
Phone: 646-863-6341
Website: https://prismmarketview.com