Dow Jones and S&P 500 have finished the Monday’s bargain with the decrease
The US stock indexes Dow Jones Industrial Average and Standard&Poor’s 500 have finished the trading session with a slight fall against the background of the oil market decline on Monday.
Traders express caution, expecting the new data from the Federal Reserve System. This week the market attention has been focused on the Federal Reserve System’s annual symposium in Jackson Hole. Market Watch reported that on Friday, 26 August the head of the Federal Reserve System Janet Yellen would speak at the symposium.
Experts say that Mr. Yellen can make clear that the US Central Bank is ready to raise the base interest rate at the meeting in September. However, some analysts are skeptical about the probability of the raising rates by the Federal Reserve System in the near future. According to the JPMorgan’s funds strategist Mislav Matejka, the FRS (the Federal Reserve System) unlikely will change the monetary policy before the US presidential elections in November.
Other economists also have the same position. They note that the Central Bank will not create the nervousness in the conditions of the political uncertainty. “Currently the markets are being put down in the possibility of raising rates by the FRS in March next year. If the FRS really wants to do this before, Mr. Yellen should take the opportunity to bring it to the market on Friday”, – paid attention Craig Erlam, the analyst of Oanda.
Stanley Fischer, the Vice-president of the Federal Reserve, in his speech on Sunday said that the FRS was close to achieving the main goals of the monetary policy: the full employment and the price stability. In addition, he said that he expected the increase of the US GDP in the near future.
Traders and analysts regarded his statement as an indication of the likelihood of raising rates by the FRS later this year. And this provoked a sudden strengthening of the US dollar against the euro and other currencies. In its turn this contributed to the decline of oil and metals prices, which reduced the stock quotes of the commodity companies.
By the results of the trading on Monday the Dow Jones Industrial Average Index has fallen by 0.1% – to 18,529.42 points. The Standard&Poor’s 500 Index has fallen by 0.1% and became equal to 2182.64.
The value of the Nasdaq Composite Index has increased by 0.1% – to 5244.6 points.