Traders now see a near-chance chance that the Fed will cut interest rates at its June meeting, down from a greater than 70% chance a month ago, according to CME Group data.
Wall Street does not define a trend this Monday after a rollercoaster-style closing last week left that market a little below its record. The S&P 500 lost 0.1%. The Dow Jones Industrial does so by 0.2% and the Nasdaq by 0.1%. The main indices thus erase a slight rise at the beginning of the wheelwhich demonstrates the uncertainty in which the market is immersed in a week full of data.
Much of the focus is on interest rates and when the Federal Reserve will lower them to relieve pressure on the economy and the financial system. A series of reports showing that inflation and the economy have remained stronger than expected forced Wall Street to delay forecasts for when rate relief might arrive.
Wall Street: the data analyzed by the market
This week there are several key points that could shake expectations even further. The latest monthly update on the inflation felt by American consumers will be released on Wednesday. Later in the week there will be reports on inflation at the wholesale level and inflation expectations future among American households.
The president of the FedJerome Powellrecently said it still expects interest rate cuts this year, but the central bank needs additional confirmation that inflation is heading toward its 2020 target.%. The Fed has kept its main interest rate at the highest level in more than two decades, hoping to reduce economic and investment prices enough to control inflation. The risk of keeping rates too high for too long is that it could cause a recession.
Traders now see a near-chance chance that the Fed will cut interest rates at its June meeting, down from a greater than 70% chance a month ago, according to CME Group data.
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Reuters
And as the team mentions Aurum Values, The volatility of the US stock market had a strong rebound in recent days, returning to values from 6 months ago. Only the S&P 500 and Nasdaq futures fell 2.5% in the first days of April, with a recovery on Friday.
Treasury Bond rates are well above the values of a month ago. The market seems to be prioritizing the optimism of corporate results and activity, although (as we have already commented) this implies an adjustment to the economy that has not yet been made (pending) and with rising inflationary risks. In this way, we expect volatility to increase in a week with inflation data and meetings of policy makers.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
