U.S. markets opened lower, investors should be cautious of risks.

U.S. Markets Show Negative Trend at Opening

The New York Stock Exchange moved predominantly downward in this morning's opening. The Dow Jones Index fell by %0.27 to 48,762.04 points. Another key index, the S&P 500, dropped by %0.24 to 6,922.39 points; the Nasdaq index decreased %0.37 to 23,375.56. These declines are believed to stem from investors behaving cautiously in the face of political uncertainties in the U.S.

Fed Chair Nominee Worries Investors

President Donald Trump's nomination of former Fed Board Member Kevin Warsh to replace Jerome Powell, whose term will end in May, is perceived as a “hawkish” approach in the markets. This situation created uncertainty among investors, accelerating the declines observed at the opening.

Sharp Sales in Precious Metals Continue

Recent market fluctuations have led to sharp sell-offs in precious metals. Analysts cite margin call requirements in the futures market and investors' shift to cash to cover their losses as major factors triggering this situation. This can lead to further declines in precious metals prices.

Macroeconomic Data on Investors' Agenda

The intense macroeconomic data calendar in the U.S. is attracting investors' attention. Particularly, the non-farm payroll report to be released on Friday, as well as JOLTS job openings, ADP private sector employment data, and unemployment claims will provide critical insights into the labor market. Investors are hoping to gain more clues regarding the Fed's monetary policy based on these data.

Earnings Season and Government Shutdown

As the earnings season continues, the financial results of technology giants such as Alphabet, Amazon, and AMD are eagerly awaited by investors. Furthermore, the U.S. federal government is in a partial shutdown due to the failure to complete the legislative process for the budget package approved by the Senate on January 30. Investors are also closely monitoring news related to this budget package.