Although the president of the United States Federal Reserve, Jerome Powell, indicated that persistently high inflation will delay the expected rate cut, he refused to consider the possibility of them rising again.
Wall Street’s main indices are trading higher this Thursday, a day after the Federal Reserve (Fed) kept interest rates unchanged and allayed concerns about possible hikes.with attention focused on a crucial jobs report due Friday.
At 1401 GMT, the Industrial Average Dow Jones improves 0.8%, to 38,194 units; the index S&P 500 gains 0.8%, to 5,059 units; and the Nasdaq Composite it advances 1.4%, to 15,815 units.
Although Federal Reserve Chairman Jerome Powell indicated that persistently high inflation will delay the expected rate cut in the United States, he refused to consider the possibility of them rising again.
Money markets see a 58% chance of a first rate cut of at least 25 basis points in September. Likewise, they see a 68.4% probability that there will be a reduction in November, according to CME’s FedWatch tool.
“The takeaway from the Fed statement and the press conference was that more rate cuts are on the cards, but by the end of the year,” said Brian Nick, investment strategist at the Macro Institute.
Attention now turns to Friday’s key nonfarm payrolls data, which will provide a clearer picture of the labor market and the path of rates.
Apple gained 2.1% pending the iPhone maker’s quarterly results, which will be known after the close.
Source: Ambito
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