This week, the focus will be on Wednesday’s consumer price data.
The S&P 500 has rallied 13% from its mid-June lows, but investors fear signs of persistent inflation this week could further bolster the Federal Reserve’s case for tightening monetary policy.
“While it is clear that the Fed needs to continue to tighten monetary policy, there are still about six weeks until the next meeting and we remind investors that economic data can change very quickly,” said Robert Schein, chief investment officer at Blanke Schein Wealth Management. .
“The CPI data will help confirm whether the Fed’s tightening efforts have been successful in starting to tame inflation or whether further tightening is needed.“.
Future rates on Wall Street
US interest rate futures have priced in a 68.5% chance of a 75 basis point hike at the Fed’s September meeting, down from 41% before Friday’s data, which topped expectations. market expectations.
Tech stocks and megacap growth stocks were higher in early trading, with Tesla up 5.2%. The American electric car maker has signed contracts worth about $5 billion to buy materials for its batteries from nickel processing companies in Indonesia, according to a CNBC report.
High-growth stocks, such as Apple Inc. Y Amazon Inc.whose valuations are vulnerable to rising bond yields, gained as US Treasury yields retreated from strong highs in the previous session.
Shares of chipmaker Nvidia Corp fell 4.6% after it said it expects second-quarter revenue of $6.7 billion, down 19% from the previous quarter, hurt largely by weakness. of your gaming business.
Source: Ambito
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