FX.co ★ The U.S. stock market review

Stock indexes continued rollback on Tuesday so long as investors were in expectation of two-day FRS session results and decisions on interest rates.

Dow Jones Industrial Average fell by 96,50 points or 1 %, to 9241,45. S&P 500 slide by 1.3 % to 994,35. Nasdaq Composite declined by 23 points to 1970. Treasury bond price rose as a result of investors’ aspiration to put money into safe assets and hailed the successful auction selling 3 year treasury notes with the total amount of $37 billion.

Financial sector, which is the most sensitive to interest rates, was the weakest on Tuesday and has fallen by 3,5 %, although recently stocks of banks and insurance companies have been the leaders. Many investors also began to worry that stock market is “overheated” and is inclined to pullback. Besides, the authoritative analyst Richard Bove urged investors to fix profit as in the financial sector are inflated soap bubbles again which are groundless.

Investors are in expectation of two-day FRS session results, the meeting started on Tuesday. Though market participants expect that FRS will leave the bank rate without changes, they will search for any hints on probable term for «cheap money» policy completion.

DJIA

NASDAQ Composite

S&P500

Kind regards,

Analyst: Vladimir Donin.