The New York Stock Exchange should try to halt its downward momentum on Thursday after three consecutive sessions of declines for the Dow Jones, linked to concerns over the timing of Fed rate cuts.

Half an hour before the opening, the Dow Jones futures contract was down 0.2%, but the Nasdaq futures contract was up almost 0.7%, heralding a pause in the downtrend that has been underway since the start of the week.

US equity markets look set for a technical rebound after an unfavorable sequence that has seen the S&P fall back below the 4,800-point threshold and into the red since January 1.

Nevertheless, investors remain concerned by the uncertainties surrounding the date of the US Federal Reserve's first rate cut, following the solid economic indicators published in recent days.

While the figures for building permits and housing starts were greeted without emotion, the announcement of a further fall in jobless claims last week disappointed market participants, who had been hoping for an upturn.

Against this backdrop, uncertainty persists as to when the Federal Reserve will cut rates, a hope that had recently lifted Wall Street to record levels.

On the bond market, the yield on 10-year Treasury bonds continues to rise, above 4.12%, back to over one-month highs.

The money markets are now expecting only 53.8% of the market to cut rates by 25 basis points on March 20, compared with over 70% last week.

Added to these concerns are worries about the corporate earnings season, which has so far been mediocre, as illustrated by the lacklustre performance unveiled last night by aluminum producer Alcoa.

The CBOE's VIX volatility index, a barometer of risk aversion which yesterday broke through the 14.80-point barrier signifying the end of a complacent climate, is down this morning by 3.5 points to 14.3.

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