US Stocks Lower on Middle East Tension

Wall Street’s main indexes slipped on Tuesday, hit by trade jitters and rising tensions in the Middle East, while investors focused on speeches by Federal Reserve officials for clues on monetary policy.



Fed Chair Jerome Powell is among a host of central bank policymakers scheduled to speak amid rising expectations of an interest rate cut for the first time since the financial crisis.

Traders fully expect a rate cut from the U.S. central bank in July and see a 40% chance of a 50 basis point move, CME Group’s FedWatch program showed.

The banking sector, which tends to take a hit from a low interest rate environment, was down 0.83%, while the financial sector dropped 0.5%. [US/]

The prospect of more monetary stimulus for the economy has helped Wall Street’s main indexes rise a least 6.5% this month, with the S&P 500 hitting a record high last week.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza