In this context, the Dow Jones index of industrialists rose 0.27% to 46,142.24 points; The S&P500 won 0.47% to 6,631.17 points and the Nasdaq Composite showed 0.94% to 22,470.73 points.
Do new fed cuts approach?
The Federal Reserve reduced its reference rate of federal funds at 25 basic points on Wednesday, up to an objective range of 4.00% to 4.25%, which represents its first reduction of rates since December.
The updated projections published after the meeting showed that The majority of those responsible for monetary policy expect two more cuts in 2025, which underlines the change of focus of the Central Bank towards supporting a labor market in deceleration, without losing sight of persistent inflation.
Powell, at his press conference after the decision, described the provision as a measure of “Risk Management”stating that officials wanted to protect themselves to the possibility of a more pronounced increase in unemployment.
“The market is not convinced with these soft landing projections, which are the softest, and believes that the Federal Reserve will probably have to take additional measures, with two or three additional cuts that are already considered above the Fed forecasts,” said Ing Group analysts in a note.
The decision was not unanimous. The newly appointed Governor Stephen Miran was the only one who expressed his disagreement, advocating a deeper cut of 50 basic points.
This disagreement highlighted the growing debate within the Central Bank, about the forcefulness with which to respond to changing economic conditions.
Unemployment subsidy requests decrease
The data published on Thursday showed that the number of Americans who submitted new applications for unemployment subsidy decreased last week, but the labor market has slowed due to the decrease in both demand and the supply of workers.
The initial applications of state unemployment subsidy decreased by 33,000, to a seasonally adjusted figure of 231,000, during the week that ended on September 13As the Labor Department reported this Thursday. This decrease partially reversed the increase of the previous week, which had brought applications to levels not seen since October 2021.
The layoffs remain relatively low, but hiring in the labor market has practically stagnated. The demand for workers has slowed, and economists attribute uncertainty derived from import tariffs.
The outstanding actions of Wall Street
Intel’s shares (+22.7%) shot after NVIDIA (+3.5%) announced an investment of US $ 5,000 million in the chips manufactureras part of a broader collaboration between the two giants of the semiconductors, to develop multiple generations of custom products for data centers and PC.
The alliance will focus on connecting the Nvidia and Intel architectures through NVLINK NVLINK technology, combining artificial intelligence and accelerated computing capabilities of NVIDIA with CPU technologies and Intel X86 ecosystem.
This agreement occurs a few weeks after the White House designed an alliance for the US government to acquire a massive participation in the company. Nvidia’s support represents a new opportunity for Intel after years of unsuccessful efforts to recover the position of the famous American manufacturer.
In the business world, the actions of Novo Nordisk They shot 6.2% after the pharmacist announced that the results of the final phase of its pill against obesity, of daily administration, showed a reduction in weight and a “significant” tolerance, in line with its successful Wegovy injection.
Darden Restaurants 7.7% fell after Olive Garden’s parent company reported that the profits and income of the first fiscal quarter did not reach expectations, while maintaining forecasts that are barely complied with consensus.
American Express He advanced 1.7% when the credit card giant presented the expected improvements of its US Platinum cards by adding new benefits for a value of more than US $ 3,500 per year and increasing the annual fee by US $ 200.
Dupont de Nemours They descended 1.7% after the chemical company reduced its prognosis of adjusted profits for the third quarter, to reflect the impact of the reclassification of its heat resistant fiber brand, Aramids, as discontinued operations.
Cracker Barrel Old Country Store It sank 7.6% later since the profits of the fourth quarter of the restaurant chain did not reach expectations, and its forecasts for the full year also disappointed.
Piper Sandler Dixit: “The S&P500 in 6,600 is a boxing stop”
The S&P500 has already exceeded the end of the end of the year of Piper Sandler of 6,600 points, reaching a historical maximum of 6,631 on the date, but the strategists say that the rebound can have more room to continue.
“Given the strong underlying trends and the increasing amplitude of this upward market, we suspect that the level of 6,600 can simply be a ‘boxing stop’ before moving towards a higher level during the fourth quarter,” said Craig Johnson, managing director and technical head of Piper Sandler, in a note.
The firm keeps its official end of the year objective unchanged, but he hopes that the next rate cuts of the Federal Reserve point greater profits and provide opportunities to “buy in the fall.”
The support for the S&P500 is now located at 6,508, 6,480 and 6,391 points, while resistance levels are marked in 6,648 and 6,803 points.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
