Monday, May 20, 2024

The day before the interest rate cut.. the US stock market ends with a decline

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According to Reuters, major indexes fell on Wall Street on Tuesday as investors risk aversion ahead of the Federal Reserve’s two-day monetary policy meeting.

All three indices ended the session lower amid widespread selling ahead of the announcement of the central bank’s interest rate decision, which is expected to remain unchanged.

According to preliminary data, the S&P 500 index fell 9.84 points, or 0.22 percent, to end at 4,443.69, while the Nasdaq Composite lost 32.05 points, or 0.23 percent, to 13,677.80. The Dow Jones industrial average was down 106.46 points, or 0.31 percent, at 34,517.84.

Gulf markets

Most stock markets in the Gulf region ended higher on Tuesday, with the Egyptian stock market closing higher ahead of the US Reserve’s decision on interest rates.

The U.S. Federal Reserve is expected to keep borrowing costs unchanged at 5.25 percent to 5.5 percent on Wednesday. Traders will be looking for signs of how long the central bank will keep interest rates at current levels.

Monetary policy in the six Gulf Cooperation Council countries is generally guided by that of the US Federal Reserve, as most currencies in the Gulf countries are pegged to the dollar.

The Saudi index was up 0.3 percent, with shares in Alinum Bank up 1.9 percent and Saudi Arabian Mining Company (MADEN) shares up 4.9 percent for two sessions of losses.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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