Stock Market Index drops slightly below 12,000 mark
Market Review: Fed Decision Sparks Mixed Performance
The financial markets maintained a calm demeanor today, despite the looming decision from the Federal Reserve scheduled for the evening. The focus of investors was squarely on Jerome Powell, the Chair of the Federal Reserve, as they eagerly awaited signals about US interest rate policies.
In the tech sector, VAT took a breather after recent strong gains. Uncertainties surrounding Nvidia were cited as a contributing factor, with reports suggesting that the Chinese government has asked companies not to use AI chips from the US manufacturer. Consequently, the SLI, comprising 31 stocks, dipped 0.07 percent to 1,983.08 points.
The construction sector showed mixed performance. Amrize emerged as one of the biggest winners, up 1.3 percent, while companies like Sika, Schindler, Geberit, and Schindler experienced losses of up to 0.6 percent. Holcim, another player in the sector, closed slightly higher.
The Swiss Market Index (SMI) opened with an upward trend after the US market opened but failed to sustain the momentum. The index closed 0.16 percent lower at 11,998.96 points. Notable losses were seen in the luxury conglomerate Richemont, which experienced a daily loss of 2.2 percent, primarily due to ex-dividend trading of its shares.
In the broader market, the SPI fell 0.08 percent to 16,695.87 points. Partners Group recovered somewhat from their recent weakness, up 1.9 percent, following a target price increase and the confirmation of a "Buy" rating by UBS. However, the shares of packaging specialist SIG Group continued their downward trend and are set to leave the SLI on Friday.
Interestingly, Sandoz closed significantly higher, consistently increasing its profits during trading hours. Nestlé's leadership underwent a significant change, with the company's chairman of the board of directors, Paul Bulcke, resigning early, and the company now boasting a completely new leadership.
Some voices expect a cut of 50 basis points in US interest rates, while a cut of 25 basis points is widely expected. With the Fed decision imminent, the markets await Powell's announcement with bated breath, eager to understand the implications for the global economy.
