Dow Jones Today: Stock Futures Dip on Central Banks’ Caution

January 17, 2024
1 min read

In today’s article, stocks fell as central banks tempered rate cut expectations.

The Nasdaq Composite traded 1% lower midday Wednesday, while the S&P 500 fell 0.7% and the Dow Jones Industrial Average slipped 0.3%.

Fed Governor Christopher Waller emphasized the need for caution when considering rate cuts, saying that the central bank should be methodical and careful in its approach. European Central Bank President Christine Lagarde echoed this sentiment, warning investors against being overconfident about the timing and speed of rate cuts this year.

Shares of Charles Schwab dropped 2.3% after the company reported a decline in profit and sales due to lower interest revenue and a regulatory charge. Albemarle, the world’s largest lithium producer, announced cost-cutting measures and job layoffs due to falling demand for electric vehicles and declining lithium prices. Treasury yields rose to a one-month high as Federal Reserve talk hinted at a more hawkish stance.

Tesla shares fell over 3% after the company slashed prices on its Model Y cars in several European countries. Advanced Micro Devices gained over 8% on optimism about its AI chip sales potential.

In premarket trading, futures contracts connected to the Dow Jones Industrial Average were down 0.4%, while S&P 500 futures slipped 0.5% and Nasdaq 100 futures traded 0.6% lower.

Don't Miss