US stocks entered the new trading week with a slight decline. All three major indices fell, with technology erasing its losses during the day. Investors are tense about what the two-day meeting of the US Federal Reserve will bring.
The Dow Jones, the S&P 500 and the Nasdaq started Monday’s trading in the red. And although they were erasing their losses massively at the end of the trading day, only the Nasdaq technology index managed to get into positive territory.
Tension on Wall Street could be cut
Investor tensions on Wall Street could be cut on Monday. Nervousness is rising as the Federal Open Market Committee (FOMC), which is responsible for setting monetary policy tools within the Fed (the US central bank), is scheduled to meet on Tuesday and Wednesday.
Rising interest rates
Analysts and investors expect the Fed chief to announce a 0.5 percentage point interest rate hike on Wednesday. However, it is possible that the rate rise will be even more robust. This is in light of inflation, which is rising every month and surpassing 40-year highs. If the Fed raises rates more significantly, stocks are likely to weaken in the short term.
