The Consumer Price data in the US was known and was better than expected. Information suggests there could be an interest rate cut in September.
Wall Street, the New York Stock Exchange, opened with strong increases this Wednesday, May 15, driven by the drop in US inflation for the first time since January.
In the first operations, the Dow Jones index gained 0.43%, the technological Nasdaqwhich had already reached an all-time high the previous day, advanced 0.54%, and the S&P 500 gained 0.41%.
He annual consumer price index (CPI) it hit 3.4% in April, down 0.1 percentage point from March, according to the Labor Department.
Rate and inflation expectations
The US PCE coincides with the average of economists’ forecasts surveyed by Dow Jones Newswires and The Wall Street Journal.
This data increased less than expected in April, suggesting that inflation resumed its downward trend at the beginning of the second quarter, in a boost to financial markets’ expectations of a interest rate cut in september.
The Investors do not foresee rate increases in 2024, but have had to lower expectations of cuts, given persistent inflation. They currently foresee cuts of 43 basis points in December, compared to 150 basis points expected in early 2024.
Source: Ambito
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