Today, the US stock market is likely to start lower. Because? Well, investors are taking a break from the recent good run. This good run came about because the Federal Reserve, which is like the head of monetary affairs in the United States, hinted that it could make things easier with money. But now people are slowing down a little bit.
You know, the big money numbers, like the Dow and S&P 500, are up more than 2% since December 13th. That’s when the Federal Reserve said they could make things easier on money through 2024. The Dow even hit a new high, and the S&P 500 is near its highest level since January 2022.
But after all this good news, some people, like Chicago Federal Reserve President Austan Goolsbee, are saying, “Wait a minute, let’s not get too excited. We need to see if we can overcome this problem called inflation before we make money too easily.”
People who watch the money issue closely think the Fed could ease money quite a bit next year, perhaps more than 125 basis points. They even think that the first change could happen in March 2024. But you know, not everyone agrees. Some say: “Maybe we don’t need that many changes. Maybe just two in 2024 and then stop.”
And there’s this company called FedEx. They are going through a difficult time. Their shares fell a lot, about 10.9%, because they are not making as much money as people thought. Another company, UPS, is also feeling the impact because they are in the same delivery business and their stock fell 3.2%.
Later today, we’re expecting news on how secure everyday people feel about money and also information on people buying and selling homes. That comes at 10:00 am
As of now, the Dow is expected to start down 56 points, the S&P 500 down 8.25 points, and the Nasdaq down 42 points.
So, today there is a little pause. Let’s see how things go!
Also read: Today’s Stock Market Update: US Futures Hold Gains Amid Rate Cut Speculation