US stocks drop as markets eyes later Fed pivot on rates
Wednesday, April 03, 2024       03:18 WIB

New York, April 2, 2024 (AFP)
Wall Street stocks finished decisively lower Tuesday as expectations for a delayed pivot on US monetary policy added to selling pressure at the start of the second quarter.
After major indices posted impressive gains in the first quarter, stocks are poised for "normal consolidation activity after stellar start to the year for many stocks," said
The Dow Jones Industrial Average finished down 1.0 percent at 39,170.24.
The broad-based S&P 500 shed 0.7 percent to 5,205.81, while the tech-rich Nasdaq Composite Index dropped 1.0 percent to 16,240.45.
The weakness in the early going of the second quarter comes as many market watchers consider equities "overbought."
Adding to the selling pressure has been a rise in US Treasury bond yields, a proxy for interest rates, following unexpectedly high inflation data that has led analysts to push back expectations for Federal Reserve interest rate cuts.
On Tuesday, a senior Federal Reserve official said that she recently raised her prediction for interest rates over the longer term.
"I raised my estimate to reflect the continued resilience in the economy despite high nominal interest rates and higher model-based estimates of the equilibrium interest rate," said Cleveland Fed president Loretta Mester.
Among individual companies, GE Aerospace, the revamped General Electric following the company's split into three groups, fell 2.4 percent.
GE Vernova, the renewable energy company spun out from the conglomerate, lost 1.4 percent, while GE Healthcare Technologies, which was spun out in January 2023, dropped 1.6 percent.
Health insurance stocks slid after US health officials set lower than expected reimbursements under the government Medicare program.
Dow member UnitedHealth Group tumbled 6.4 percent, while Humana slumped 13.5 percent.
Tesla fell 4.9 percent after reporting lower than expected first quarter auto sales.
Disney rose 1.1 percent following a Wall Street Journal report that the entertainment giant was leading a closely-watched proxy battle with activist Nelson Peltz ahead of the company's annual meeting on Wednesday.

Sumber : AFP