US stock markets experienced a downturn on Tuesday, concluding the trading day in New York with the Dow Jones Industrial Average registering 46,293 points – a decrease of 0.2% compared to the previous day’s close.
Earlier in the session, the broader S&P 500 slipped to approximately 6,657 points, marking a 0.6% decline, while the Nasdaq 100 stood at around 24,573 points, down 1.0%.
Market participants were keenly awaiting a speech by Federal Reserve Chair Jerome Powell, anticipating his assessment of the economic outlook. Contrary to hopes among some investors, Powell emphasized the complex circumstances facing the Federal Reserve. He noted that “near-term risks to inflation are tilted to the upside, while risks to employment are tilted to the downside”. Powell further stated that these competing risks indicate “there is no risk-free path.
He cautioned that prematurely loosening monetary policy could compromise efforts to combat inflation, potentially requiring a later reversal. Conversely, maintaining restrictive policies for too long could unnecessarily weaken the labor market. “When our goals are in such tension, we must balance both sides of our dual mandate” Powell explained.
The Euro strengthened slightly, trading at $1.1816 on Tuesday evening, equivalent to €0.8463 per dollar.
Gold prices benefitted from the market conditions, reaching $3,764 per fine ounce, a 0.4% increase, which equates to €102.43 per gram.
Meanwhile, the oil price saw a significant increase; a barrel of Brent crude oil traded at $67.95, representing a rise of 2.1% compared to the previous trading day’s close.