Stock market in New York: Investors remain cautious as they await the decision on US interest rates
The US bank stock market showed a mixed performance on Tuesday, with the S&P 500 and the Nasdaq 100 experiencing minor declines, while the Dow Jones Industrial Average and certain individual stocks saw gains. The S&P 500 fell by 0.10 percent, closing at 6,600 points. The Nasdaq 100 lost 0.41 percent, ending the day at 24,176 points. However, the Dow Jones Industrial Average rose by 0.61 percent, reaching 46,037 points. Shares of cloud software specialist Workday rose by 9 percent, making it the clear leader in the stock market today. The surge in Workday's stock price followed improved sentiment according to analyst firm Evercore ISI. Evercore ISI also improved its assessment of the chance-risk profile for Workday. Jefferies reiterated its buy recommendation for Baidu and significantly raised its price target to $157. Baidu, a Chinese search engine operator, gained 6.3 percent and continued its AI stock rally, approaching nearly $132. Baidu's gains were the highest among individual stocks. Nvidia was the worst performer in the Dow Jones Industrial Average due to instructions from China's Cyberspace Administration (CAC) for the country's largest technology companies to refrain from purchasing certain AI chips from Nvidia. As a result, Nvidia shares fell 2.7 percent. The dispute over high-tech chips between China and the US has further escalated due to the instructions from the CAC. From the perspective of chart experts at Index Radar, the record run on US exchanges could still continue after the interest rate decision. The market has already gained momentum before the interest rate decision, fitting the picture, as per Index Radar. Benoit Anne, bond expert at MFS Investment Management, commented that an interest rate cut is practically a done deal. However, Fed Chair Jerome Powell is not expected to communicate future monetary policy intentions. After investors had already priced in a significant easing, the room for surprise is large, as per Benoit Anne. Data dependency and forecasts, according to Benoit Anne, are not a good mix. Excluding recession phases like 2002 or 2008, the probability of price gains over six months for the S&P 500 is 90 percent, according to Index Radar. In conclusion, while the US stock market showed a mixed performance, certain individual stocks like Workday and Baidu saw significant gains. The market's anticipation of an interest rate cut by the Federal Reserve continues to shape the market's momentum, despite the ongoing dispute over high-tech chips between China and the US.
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