Wall Street folds slightly while waiting for a decision from the Fed

Wall Street fell slightly after starting the session in the green, investors hesitating pending the release of a decision of the US Central Bank (Fed, despite better than expected indicators.

Around 13:40 GMT, its flagship index, the Dow Jones Industrial Average, lost 0.14% to 27,034.43 points.

Nasdaq, with its strong technological color, was down 0.21% at 8,259.81 points and the broad S & P 500 index up by 0.14% at 3,032.62 points.

The New York Stock Exchange ended slightly lower on Tuesday after a jagged session, setting back before the end of the meeting of the monetary institute Wednesday and after a mixed salvo of corporate results including the disappointing ones of Alphabet: the Dow Jones yielded 0.07% and the Nasdaq 0.59%.

Market players almost unanimously expect the Fed to lower its overnight rate by a quarter of a percentage point (0.25%).

“But the following decision remains a mystery,” says FTN Financial's Christopher Low, who said “part of the answer will depend on economic data.”

“No matter what Jerome Powell (Fed Chairman, Ed) says (this Wednesday), the decision that will take the Fed in December will be linked to the deceleration or not the economy,” he adds.

The indicators of the day were in this respect rather better than expected.

According to the Commerce Department's first estimate, US economic growth slowed slightly in the third quarter, but remained above expectations, with Gross Domestic Product (GDP) up 1.9% over a year.

The private sector in the United States has also created more jobs than expected in October, according to the monthly survey of the firm ADP business services published Wednesday, or 125,000 jobs in October after 93,000 in September.

Investors will monitor Friday the release of the official report on US employment as well as the ISM indicator on manufacturing activity.

In the bond market, the yield on the 10-year rate on US debt fell to 1.812%, against 1.839% on Tuesday at the close.


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