The three indexes showed their biggest daily falls on Tuesday since June 2020. The data from inflation of the United States that was known yesterday registered 8.3% for August, more than the 8.1% that the market expected, but less than the 8.5% registered in July. The expectation now focuses on the Federal Reserve applying an interest rate hike of around 75 basis points.
“After yesterday’s selloff, anything would be welcome. And what we see is that the Producer Price Index figures were more or less as expected,” he said. Hugh Johnsonof Hugh Johnson Economics in dialogue with Reuters and added: “It is now quite clear that (the Fed) is going to raise interest rates by 75 basis points at the September meeting. The expectation is a 50 basis point hike in November and maybe another 25 in December.
The actions of the technology companies they bounce back after Tuesday’s bump and showed some faint growth: Tesla (+1.5%) and Apple (1.1%) lead this trend. Seven of the 11 major S&P sectors were up in early trading, led by a 3.1% jump in the energy sector, while banks were up 0.5%.
The CBOE volatility indexalso known as Wall Street’s measure of fear, rose to 27.18 points, approaching a two-month high hit on Tuesday.
For their part, the US treasury bonds extend their rise, after consumer and producer prices were known and the possibility of a rate hike was consolidated. The two-year bond rose 3.8%, while 10-year bonds rose 3.4%, and 30-year bonds fell 3.5%.
Source: Ambito
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