Investors are cautious ahead of the release of inflation figures and this week’s Federal Reserve meeting. The chances of a reduction are 50%, according to LSEG data.
The main Wall Street indices This Monday, June 10, starts off unevenly, since the investors They were cautious and moved away from the risk assets in the preview of the publication of inflation figures and from one Federal Reserve meeting this week, which could give clues about the relaxation of monetary policy of the central bank in the coming months.
In that context, the S&P 500 goes up 4.29 points, or 0.1%, to 5,351.28 units; he Nasdaq climb 40.91 points, or 0.2%, to 17,174.04 units; and the Dow Jones Industrial Average fell 45.27 points, or 0.1%, to 38,753.72 units.
Indices closed slightly lower on Fridayafter a hectic week of high volatility in which contradictory data showed that although the figures for May nonfarm payrolls were much stronger than expected, the unemployment increased and household surveys showed economic difficulties.
“Investors were hoping for a more polarized set of data, but instead, the rising unemployment number, in contrast to the actual jobs being added, is confusing many people, making the Federal Reserve’s job more difficult.” “, said Peter Andersenfounder of Andersen Capital Management.
Wall Street awaits May inflation and the Fed meeting
The focus is now on the consumer price index for maywhich will be published on Wednesday, and at the conclusion of the two-day Federal Reserve meetingin which the central bank is largely expected to keep interest rates stable.
After Friday’s data, markets reduced rate cut expectations by the Fed in September, and the chances of a reduction are at 50%. Expectations had risen to 69% last week.
The valuations also imply only one cut this year, down from two prior to the payroll numbers, according to data from LSEG.
“Right now, interest rates are at what I would call a break-even point and are perfectly positioned for a steadily growing economy. I would advise the Federal Reserve not to make any changes at this time,” Andersen said.
Source: Ambito
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