the heavyweights Amazon.com, Tesla Inc and Apple Inc added between a 1.4% and a 3.9%, providing the biggest boost to S&P 500 and to Nasdaq.
The consumer price index (CPI) from the Department of Labor, expected before the opening bell on Tuesday, is this week’s main event and will be scrutinized for any signs of the number and magnitude of future interest rate hikes by the Fed.
“The IPC is expected to see a small decline,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. “The market expects the news to translate into smaller rate hikes after the September FOMC meeting.”
All three major stock indices rose sharply last week, as investors took advantage of a sharp decline in share prices since mid-August, triggered by concerns about rising inflation and the impact of tighter monetary policy in curbing it.
All eyes are on Tuesday’s consumer price data. looking for any signs that price pressures may be easing. According to economists, headline inflation is expected to increase at a rate of 8.1% during the year in August, compared to 8.5% in July.
The core CPI, which excludes volatile factors such as energy and food, would rise to 6.1% from 5.9% in the previous month. A recent pullback in commodity prices, especially oil, has raised hopes that the worst of the price pressures have passed.
A weak figure could reignite speculation that the Fed will only raise rates by 50 basis points this month.though it would probably have to be very weak to have any real impact on the aggressive stance recently taken by the most monetary policy authorities.
Source: Ambito
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