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Wall Street takes profits after setting records: what economic data worries investors

Wall Street takes profits after setting records: what economic data worries investors
Wall Street takes profits after setting records: what economic data worries investors

Following Powell’s words came another indicator that showed a surprising drop in producer prices, and a separate report suggested that the labor market is cooling.

Reuters

US stock indices are mixed on Thursday after the Federal Reserve indicated that is in no rush to lower interest rates. In this way Wall Street reacts to mixed data, as well as the words of the Fed president, Jerome Powellsaid on Wednesday, after an encouraging inflation reading, that “You should not be too motivated by a single piece of information.”.

On Thursday morning, another indicator showed a surprising drop in producer prices, and a separate report suggested the labor market is cooling. In that context, the S&P 500 drops 0.2%; the Dow Jones 0.5% and the Nasdaq leads the decline with 1.4%.

The conclusion of a long-awaited vote by Tesla shareholders is also expected on Thursday.about Elon Musk’s $46 billion pay package. The Argentine president’s fetish businessman said Wednesday night that Preliminary results show that shareholders support the package by “wide margins.” Tesla shares rise, as Ámbito reported.

The data that worries the NYSE

The producer price index for May fell 0.2% compared to the previous month. Economists surveyed by Dow Jones expected a 0.1% increase. That report comes a day after the May consumer price index rose less than expected last month.

Thursday’s data also follows a policy decision by the Federal Reserve. The Fed kept rates unchanged but noted there has been progress on the inflation front. That said, the central bank lowered its 2024 rate cut expectations to one from its previous estimate of three.

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Reuters

“We can eliminate the possibility of a rate increase from here. That’s something in our framework that supports valuations in stocks and credit,” said Zachary Hill, head of portfolio management at Horizon Investments. “Our basic expectation right now is that we are going to continue to make progress in the equity markets.”

US stocks rose in the previous session, with the Nasdaq and S&P 500 hitting record highs, after data showed inflation slowed in May and the Federal Reserve tentatively forecast an interest rate cut before the end of the year. The Dow Jones Industrial Average, with few technology stocks leading the session, fell.

Source: Ambito

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