The current state of the stock market in the United States of America, according to economic reporters in connection with the analysts of brokerage companies, according to the results of Tuesday’s trading day, 26/09/2023, is coming under pressure from investors who prefer to wait for more favorable data and especially try to estimate further developments regarding interest rates in the USA, set by the Federal Free Market Committee of the United States Federal Reserve System (FED). The recent FOMC Fed meeting left rates unchanged, but now the prevailing investor sentiment is 50 to 50 that the next FOMC Fed meeting will already raise rates.
On the basis of this investment sentiment, yesterday’s trading day, Tuesday, September 26, 2023, brought a drop in the previous point values of all major stock indexes in the USA. This decline in stock prices as a whole expressed by individual stock indices was in a moderately deep slump, when the drop in the point value of these US market stock indices ranged from 1.14% of points to 1.57% of the point value. The smallest decrease, but over 1% per day, was created by the DJIA stock index, which recorded a decrease of -1.14% points and closed at a value of 33,618.88 points with a daily loss of 388 points according to this prestigious and selective index. On the contrary, the highest point loss was recorded by the NASDAQ stock index, which is mainly composed of equity titles of technology companies, and this decrease was in volume – 1.57% points and closed the trading session on 9/26/2023 at a point level of 13,063.61 points with a daily decrease o – 207.71 points.
This result of trading on Wall Street was achieved in a situation where the exchange value of the US dollar (USD) still maintained a high value and according to the dollar index DXY (US Dollar Currency Index), the point status of this index still keeps this index above the value of 105 USD points and in this 39. week of this year, the point value according to the DXY index even crossed the threshold above USD 106 points. Currently, during the European Wednesday morning on September 27, 2023, at approximately 8:49 CET, the value of this point state of the DXY (US Dollar Currency Index) found itself at a value of 106.25 USD points with a daily gain of + 0 .02% of the point value according to this index, which compares the value of the USD with the other six major world currencies. On the day in question, the global currency pair EUR/USD was trading at a mutual exchange rate of 1.0566 USD per EUR, with a daily decrease of EUR by -0.047% against the USD.
According to economic correspondents linked to analysts of brokerage companies and financial strategists of investment banks, the situation regarding the exchange value of the American dollar (USD) has become very tense. The American central bankers will apparently, under the influence of the still high rate of inflation in the USA, proceed to increase interest rates again, when it may not be only a mild increase of 25 basis points, but according to some economic observers, a higher increase may occur, but probably in several steps. It is this sentiment that leads investors to believe that interest rates in the US will probably increase in 2023, thus damaging the investor attractiveness of investments in shares. The current levels of the stock markets still do not attract investors, traders and other participants of the stock market to make larger purchases, and investors will probably wait to see if the development in the mentioned areas manifests itself in a positive direction, according to economic reporters.