This Wednesday’s round is still marked by the higher-than-expected price increase and the Fed official’s comments.
The main Wall Street indices They rebound this Wednesday, January 14, after a sharp drop in the previous round after it became known that prices increased more than expected in the United States during January and cooled expectations of an early rate cut.
In that context, the S&P 500 index rise 12.93 points, or 0.3%, to 4,966.10 units, while the Nasdaq climbs 46.26 points, or 0.3%, to 15,701.86 units. Meanwhile, the Dow Jones Industrial Average advance 42.60 points, 0.1%, to 38,315.35 units.
Inflation in the United States rose more than expected and the possibility of an early rate cut is receding
A report of the work Department showed that the consumer prices In the United States they increased more than expected in January, due to increases in housing and healthcare. For this reason, market expectations regarding the schedule of possible cuts by the company were delayed. Federal Reserve this year.
The president of the Chicago Fed, Austan Goolsbeeassured that the path of Federal Reserve towards your goal of 2% inflation I would continue on the right path, even if the price increase is a little higher than expected in the coming monthsand The Central Bank should be cautious about waiting too long before cutting interest rates.
Markets have advanced this year, supported by bets that the Fed will begin cutting rates in May. He S&P 500 closed above 5,000 for the first time on Friday. He Dow also traded at record levels, and on Monday the Nasdaq briefly surpassed its November 2021 all-time closing high.
After the publication of the inflation data, Traders’ bets on a rate cut of at least 25 basis points in May fell to 36.1%compared to 58% prior to the data, while expectations for a cut in June stood at 74.3%, according to the tool FedWatch from CME.
Source: Ambito
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