This occurs despite the fact that consumer price data was slightly higher than expectations.
The Nasdaq index, driven by its technological weight, leads the push on Wall Streetwhile traders maintain their bets in favor of interest rate cuts by the Federal Reserve in the coming months. This occurs despite the fact that consumer price data was slightly higher than expectations.
At this moment, the Dow Jones Industrial Average it rises 169.89 points, 0.44%, to 38,939.55 units; he S&P 500 it gains 39.06 points, 0.76%, to 5,157.02 units; and the Nasdaq Composite scale 171.14 points, 1.07%, to 16,190.22 units.
According to a report from the Department of Labor, consumer prices in the United States experience an increase in February, driven by rising gasoline and housing costs. He Consumer’s price index (CPI) rose 0.4% last month, following a 0.3% advance in January. Excluding volatile food and energy components, consumer prices rise 0.4% in February, in line with the increase registered in January.
“The report showed stable food prices (they had grown 0.4% m/m in January), while the services component that excludes energy also showed a deceleration in February towards 0.5% m/m from the previous 0.7%,” adds the Research team Balanz Capital. And he adds that Energy, on the other hand, showed a acceleration marked towards 2.3% m/m from -0.9% previously“which largely explains the surprise in monthly inflation.” This report likely supports the idea that rate cuts by the Federal Reserve will come closer to the second half of the year.
Wall Street: how the data fell in the square
Despite these data, operators now estimate cWith a 70% probability that the first rate cut will occur in Juneaccording to the CME FedWatch tool, declining slightly from 71% prior to the report.
The rise in the stock market during February is slowed after showing signs of a robust economy and stable inflation. This leads traders to adjust expectations on the timing of the first rate cutpostponing it from March to June.
Eight of the 11 major S&P 500 sectors post gains, highlighting rate-sensitive tech stocks up 2.0%. Chip stocks reverse their two-day bearish trend, adding 1.7%, while favorite artificial intelligence company Nvidia posts an impressive 5.9% gain. In the megacap sector, Meta Platforms also contributes with an increase of 3.4%.
On the other hand, Oracle experiences a notable increase of 11.2%, driven by signs of progress in its plan to gain presence in the cloud computing market, thanks to its collaboration with the artificial intelligence chip giant, Nvidia.
However, the negative news of the day is the 4.1% drop in Boeing sharesafter a Federal Aviation Administration audit detected dozens of problems in the production of the 737 MAX.
Source: Ambito
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