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U.S. stocks fell on Wednesday as traders took solid private jobs data.
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Investors are waiting for comments from Fed officials on the path to rate cuts this year.
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Atlanta Fed President Rafael Bostic warned that there will only be one rate cut, at the end of 2024.
U.S. stocks fell on Wednesday as investors received private jobs data and awaited further comments from the Federal Reserve on its outlook for rate cuts this year. All three indexes fell in morning trading, but U.S. Treasury yields rose.
Private companies expanded hiring more than expected last month, hiring 184,000 workers, according to ADP data. That’s higher than the 155,000 private payrolls that Dow Jones economists had expected in March and shows that employment remains strong despite the Fed’s interest rate hikes.
As central bankers seek to calm the economy before easing monetary policy, a strong job market increases the risk that the Fed will keep interest rates high for an extended period of time.
Investors are now awaiting further guidance on the path forward for rate cuts, with Fed Chairman Jerome Powell and other central bank officials scheduled to speak throughout Wednesday.
Early in the morning, Atlanta Fed President Rafael Bostic was already sounding a hawkish tone about the path to rate cuts in 2024, saying in an interview with CNBC that he believes there will be only one rate cut in the second half of 2024.
“If the economy develops as I expect, with GDP, unemployment remaining strong, and inflation declining modestly throughout the year, I think it’s appropriate for us to start…downward.”This year. End, in the fourth quarter,” Bostic said.
For now, central bankers still expect a rate cut of 75 basis points in 2024. However, investors are pricing in a 46% chance that the rate cut will be less than that, higher than the 16% odds priced in a month ago. , according to the CME FedWatch tool.
Here are the U.S. indices immediately after the opening bell at 9:30 a.m. Wednesday:
Here’s what else happened today:
In Commodities, Fixed Income and Cryptocurrencies:
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West Texas Intermediate crude oil rose 0.62% to $85.68 a barrel. International benchmark Brent crude rose 0.74% to $89.58 per barrel.
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Gold fell 0.21% to $2,275.69 per ounce.
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The 10-year Treasury yield rose 4 basis points to 4.413%.
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Bitcoin rose 1.23% to $65,700.
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