The main Wall Street indices rose this Friday, after a key inflation data was lower than expected, fueling recent investor optimism about the possibility of the Federal Reserve reducing borrowing costs next year.
This trend in the American market boosted the price of Cedears in BYMA, although the increases were limited since the CCL dollar returned to negative territory in the local market.
The Dow Jones Industrial Average rose 0.1%, while the S&P 500 gained 0.4%, as did the Nasdaq Composite. The indexes were headed for their eighth straight week of gains, with the S&P 500 poised for its longest streak of weekly gains since 2017, and the Nasdaq and Dow since 2019.
However, shares of Dow component Nike plunged 10% after the sportswear maker cut its annual sales forecast, blaming cautious consumer spending.
Key data on prices that the Fed follows
The price index of personal consumption expenditures (PCE), considered the Federal Reserve’s preferred inflation indicator, rose 2.6% annually in November, compared to expectations for a 2.8% rise, according to economists consulted by Reuters.
The core inflation data, which excludes the volatile components of food and energy, rose 3.2% annually, compared to an estimated increase of 3.3%. “This helps confirm the idea of a rate cut already in March”said David Russell, global head of market strategy at TradeStation.
According to another report, orders for long-lasting manufactured goods in the United States rose in November, boosted by aircraft bookings, but business spending on capital goods appeared lackluster against a backdrop of higher borrowing costs.
Analysts also noted that low trading volume before Christmas could also impact intraday moves. The markets will remain closed on December 25.
The S&P 500 and Nasdaq rose more than 1% on Thursday after data indicated that U.S. economic growth in the third quarter was not as strong as initially reported.which placed the benchmark index within a very short distance of its historical closing maximum.
Source: Ambito
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