Traders’ expectations of a rate hike pause during the Federal Reserve’s next policy meeting held firm at 88.5%.
Wall Street operates with positivism in a day marked by a discouraging fact: inflation in the USwhich would anticipate that the Federal Reserve of that country could increase the interest rates at their next meeting in September when seeing the objective of moderating uphill the rise in prices at 2%.
In this context, the main indices of the New York Stock Market experience a notable rise in the session. According to experts, this advance was prompted by a report from inflationwhich revealed that despite the acceleration in July, prices are showing signs of slowing down, which has fueled hopes that the fed may consider a pause in your monetary tightening policy.
He Dow Jones Industrial Average the bullish momentum leads the way with an increase of 137.35 points, equivalent to 0.39%, reaching 35,027.59 units. The S&P 500 Index not far behind, registering a profit of 8.73 pointyes, or 0.19%. For his part, the Nasdaq Composite also shows solid growth, adding 38.44 pointsor 0.27%, until 14,057.75 units.
Wall Street and the inflation data in the US
The report issued by the Department of Commercewhich highlights the price index on personal consumption expenses (PCE) as the Fed’s preferred inflation gauge, highlighted that in July there was an annual increase of 3.3%in line with previous expectations.
Traders’ expectations of a rate hike pause during the Federal Reserve’s next policy meeting, which is scheduled for September, they remained firm at 88.5%. Furthermore, the probabilities that rates will remain unchanged in November are stood at 51%depending on the tool CME Group FedWatch.
Tony Rothexpert of wilmington trustcommented in this regard: “We are witnessing a real slowdown in inflation rates, which we have been pointing out for a while now. Although there are still many data to come, it is highly possible that the fed opt out of making moves in novemberwhich could indicate the end of the successive rate hikes“.
In the field of bo10-year US Treasurya slight decrease in yields is observed, which generated a boost in the most outstanding growth values, such as Alphabet, Microsoft and Teslawhich experience improvements ranging between 0.2% and 0.6%.
In the sector of S&P 500, nine of the eleven main sectors registered increases, standing out communication services and information technology, with increases of 0.4% in both casesleading the bullish outlook.
Source: Ambito
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