Wall Street Sube Despite uncertainty due to Trump Rates and Inflation Data

Wall Street upload this Thursday after former president Donald Trump announced that he plans to introduce reciprocal tariffs later. Meanwhile, investors digest a new report that suggests that inflation accelerate again.

He Dow Jones Industrial Average (^Dji) increases 0.3%, while the S&P 500 (^GSPC) Win 0.2% after having closed down on Wednesday. He Nasdaq Compositeof strong technological weight (^ixic), advances 0.3%.

The markets are on alert after Trump pointed out in a publication on social networks that his fiancious mirror tariffs will be announced this Thursday. “Today is the big day: reciprocal tariffs,” he wrote.

These rates could be applied to any country that imposes tariffs on American products, which could TAKE THE COMMERCIAL RELATIONS OF US Globally. In addition, they represent the last measure within the Trump tariff agenda, with the risk of Promote inflation and unleash a global trade war.

Given this panorama, investors were attentive to a new inflation fact, after January reading about the Consumer Price Index (CPI) cool the expectations of a rate cut in the short term. He Producer Price Index (PPI)which measures the costs at the wholesale level, showed that inflationary pressures remain high. Prices uploaded a 0.4% compared to December and 3.5% year -on -yearboth figures above the forecasts of economists.

Meanwhile, markets evaluate the prospects for a possible end of war in Ukraineafter Trump and Russian President Vladimir Putin They will agree to start peace negotiations. After the news, the dollar (dx-y.nyb, dx = f) fell.

The business results season continues its course, with a solid performance so far: almost 70% of the S&P 500 companies that have reported They exceeded expectations. The actions of Robinhood (Hood) They shot after a better benefit than expected in the fourth quarter, while the titles of Reddit (RDDT) fell due to user growth less than expected.

Among the outstanding reports of Thursday’s day are Airbnb (ABNB), Applied Materials (Amat) and Coinbase (Coin).

The expectations of fed cuts are modified

The Initiative on Ukraine arose after the greatest monthly increase in US consumer prices in 17 months Part of the Federal Reserve this year.

Currently, an additional Fed cut for 2025 is barely expected, and Not before October.

Although inflation expectations in the US based on the market for the next two years reached its highest level from shortly after the invasion of Ukraine in 2022, the fall in oil prices helped the returns to the returns to 10 years will drop about 6 basic points from the top of three weeks reached after the IPC report. They remained around 4.6% on Thursday.

And with the producer price numbers that will be published later today, the president of the FED, Jerome Powell, stressed on Wednesday that the bad news about the CPI would not be taken in isolation and that special attention would be paid to the components of the components of the components of the PPI that affect the favorite inflation indicator of the Fed, the “personal consumption expenses” (PCE).

“It is necessary to understand the translation of the IPC to the PCE, and we will obtain more data on that tomorrow with the price index to the producer,” Powell told Congress, adding: “We will know what is the reading of the PCE in late tomorrow.”

Other Fed officials agreed with Powell that the Fed is not in a hurry to reduce rates again, given the amount of general uncertainties. The president of the Atlanta Fed, Raphael Bostic, said he would not feel comfortable by resuming fees cuts until there is more clarity.

The reaction of the dollar before all this has been different from the usual, with its main index (.dxy) falling despite the aggressive position of the Fed and the high yields of the treasure bonds.