The main indices of Wall Street They go up this Tuesday, July 11, waiting for the US inflation datasince investors were confident that a slowdown in price growth could support an end to the Federal Reserve’s rapid-tightening policy sooner than expected.
In it nasdaq, where technology, growth and mega-cap values weigh, turns around and rises 25.61 points (+0.19%) to 13,711.09 units. Meanwhile, the index S&P 500 gains 13.52 points (+0.31%) to 4,423.05 units, while the Dow Jones Industrial Average adds 179.78 points, (+0.53%) to 34,124.18 units.
Nasdaq Inc. said it would rebalance its index Nasdaq 100 to address benchmark “over-concentration” “The impact (of the adjustment) may be modest,” he said Art HoganChief Market Strategist B Riley Wealth.
Inflation in the United States is known on Wednesday: what investors expect
The latest data, due to be released on Wednesday, is expected to show a annual cooling of consumer prices in Junewhich could influence bets on a new rate hike after the July meeting.
Investors are already expecting a 25 basis point rate hike later this month after a jobs report last week pointed to a resilient US economy.
In the previous session, the main US stock indices closed a choppy session slightly higher, after Federal Reserve officials signaled that the Central Bank was nearing the end of its monetary tightening cycle.
“Investors are spending a lot of time thinking about the CPI data”said Peter Andersen, founder of Andersen Capital Management.
And added: “They expect those numbers to cool down a bit, which could signal to the Fed that the rate hikes are working and that there could be an earlier end to future rate hikes.”
Inflation in the US: what the Fed says
The president of the New York Fed, john williamshe said in an interview with Financial Times than the central bank hasn’t finished raising rates.
“We have indicated through our projections and our communications that we believe we still have some way to go before monetary policy is tight enough for inflation to reach 2%. All this reflects the commitment to achieve price stability not in 10 years, but in a few years“Williams told the newspaper.
Williams did not specify the tightening he expects from the Fed, which last month kept its overnight rate between 5%-5.25%, and noted that rates are likely to rise another half a percentage point over the course of the year.
In this sense, the president of the New York Fed said that the economy has not yet felt the full impact of the previous increases. “We are not yet getting the full effects of the tightening we put in place,” he said, adding that “they are still ahead of us, although we have already gotten some of the effects in certain interest rate sensitive sectors.”
He also indicated that supply and demand in the labor market are balancing better and that he does not see the country slipping into a recession.
Regarding the economic prospects, “I don’t have a recession in my forecasts. I have fairly slow growth”he commented.
Williams also said the Fed’s balance sheet reduction process will continue for some time and did not give an end date.
Source: Ambito
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