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U.S. stocks may continue to experience volatile trading

Following the sluggish performance seen in the previous session, stocks may continue to experience volatile trading on Wednesday.Major index futures now show a slightly lower open market, The Dow futures are down 39 points.

Traders may be reluctant to make significant moves as they wait for a clearer picture of the short-term outlook for the market.

Strong economic data has helped raise stock prices to record highs in recent sessions, but traders may be worried that the market is overbought.

JPMorgan Chase Chairman and CEO Jamie Dimon said in an annual letter to shareholders that valuations were “quite expensive,” but noted rapid growth over the years. Economy You can justify the current price.

“Excessive savings, new stimulus savings, huge deficit spending, more quantitative easing, new potential infrastructure bills, successful vaccines, and euphoria towards the end of the pandemic have put the US economy on. It’s likely to be booming, “Dimon wrote. “This boom can easily occur by 2023, as all spending could grow well until 2023.

“The equity market is looking ahead and is likely to be pricing not only in the booming economy, but also in the technical factors that cause much of the excess liquidity to flow into equities,” he added. Added.

Traders may also be looking forward to the release of the minutes of the Fed’s latest monetary policy meeting. This could shed more light on the interest rate outlook.

Fed officials expect interest rates to remain near zero until 2023, according to estimates provided after the meeting, but the federal funds rate market is already in 2022, given recent bright economic data. Interest rates are expected to rise in December of the year.

On the US economic side, the Commerce Department released a report in February showing that the US trade deficit expanded more than expected.

The Commerce Department said the trade deficit expanded from the revised $ 67.8 billion in January to $ 71.1 billion in February.

Economists expected the deficit to grow from $ 68.2 billion, which was first reported last month, to $ 70.5 billion.

The deficit expanded as exports fell 2.6% to $ 187.3 billion and imports fell 0.7% to $ 258.3 billion.

Following the rebound seen during trading on Monday, stocks showed a lack of direction in the course of Tuesday’s trading day. The main average spent the day bouncing back and forth on the unchanged line before finally closing slightly lower.

The Dow fell 96.95 points (0.3%) to 33,430.24, while the Nasdaq and S & P 500 closed just below the same line. The Nasdaq fell 7.21 points (0.1%) to 13,698.38 and the S & P500 fell 3.97 points (0.1%) to 4,073.94.

In overseas trading, the stock market in the Asia-Pacific region fluctuated in the trading on Wednesday. Japan’s Nikkei 225 Index rose 0.1%, while China’s Shanghai Composite Index fell 0.1%.

On this day, the major European markets were also mixed. The UK’s FTSE 100 index has risen 0.7%, while France’s CAC 40 index and Germany’s DAX index have both fallen 0.2%.

In commodity trading, crude oil futures rose $ 0.40 to $ 59.73 a barrel after rising $ 0.68 to $ 59.33 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $ 1,736.10, down $ 6.90 compared to the closing price of $ 1,743 in the previous session. On Tuesday, gold advanced $ 14.20.

On the currency side, the US dollar is trading at 109.85 yen, compared to 109.75 yen at the end of the New York stock exchange on Tuesday. Against the euro, the dollar is trading at $ 1.1881 compared to yesterday’s $ 1.1876.

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U.S. stocks may continue to experience volatile trading

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