On Wall Street, a session that was long gone

US indices futures seem to be declining today after an unusual session on Monday when Nasdaq was able to turn around and rebound from an almost 5% drop, ending the day in the black.

We could observe such a volatile session on Wall Street as yesterday in the last time around March 2020, when the pandemic hit the financial markets. The Nasdaq 100, hitting its low yesterday, was at 13720 points, only to rise later to a high in the region of 14530 points. However, this index still remains in the area of ​​potential correction, as it is by approx. 14%. below its November peak.

Awaiting a rate hike and company results

Stock market volatility may justify, inter alia, the prospect of introducing higher interest rates in the US. Federal Reserve will end its two-day meeting on Wednesday. And while it is not expected to raise rates this time, it is expected to maintain a path of policy tightening while fighting high inflation.

This week markets are also awaiting the next quarterly results of US companies, and investors will look at earnings and forecasts for signs of a possible slowdown in economic growth after 2021.

The dollar gains ahead of the Fed's decision and in an atmosphere of tension

The dollar index fluctuated today close to a 2-week high around 96 points in the face of concerns about the faster pace of tightening of policy by the Federal Reserve and growing tensions on the border between Russia and Ukraine.

Money markets seem to be ready for the first interest rate hike by the Fed in March this year. There may then be three more hikes of a quarter of a percentage point by the end of the year.

The rising geopolitical risk could also support the dollar. NATO announced that it was putting forces on alert and strengthening Eastern Europe with more ships and fighters, which Russia condemned as an escalation of tension.