The Dow Jones index continued to decline. Most recently, it fell more than 100 points, weighed down by the rebound in US government bond yields.
As of 9:16 pm Thai time, the Dow Jones Industrial Average was at 39,615.61 points, down 191.76 points or 0.48%.
The yield on the 10-year US government bond rose above 4.3%, supported by what Christopher Waller, a member of the board of governors of the Federal Reserve (Fed), said last week. The Fed does not need to rush to cut interest rates. Until there is confidence that inflation will adjust to a sustainable level of 2%.
In addition, said Jerome Powell, Chairman of the Fed. After the United States released the Personal Consumption Expenditure (PCE) price index on Friday, it was said that although the PCE index was in line with the expectations of the Fed, But the Fed will take care before cutting interest rates.
“We need to see more progress on inflation before cutting rates. This is because the decision to start lowering interest rates is very important. We have to be careful in this regard,” said Powell.
Meanwhile, investors are selling to make a profit. After the Wall Street stock market surged in March. and 1st quarter 2024
The Dow Jones Index rose 2.1% in March and rose 5.6% in the first quarter of 2024, recording its biggest first quarter gain since 2021, while the S&P 500 Index rebounded 3.1% in March and jumped 10.2% in 1Q/2024, by made the biggest Q1 gain since 2019, while the Nasdaq index rose nearly 2% in March and soared 9.1% in Q1. /2567
Investors are keeping an eye on non-farm payrolls figures due for release on Friday. The analysts predicted that Employment numbers increased by only 205,000 in March. Slowed by 275,000 jobs in February. Meanwhile, the unemployment rate is expected to remain stable at 3.9%.
Citigroup released a report stating that the US Federal Reserve (Fed) is still likely to start cutting interest rates in June. and if the labor market slows down the Fed can cut interest rates 5 times this year.
“If economic activity proceeds as the Fed predicts, the Fed may cut interest rates three times this year.”
“But if the labor market continues to slow We expect the Fed to cut interest rates five times this year,” said the report.
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