Dow Up 200 Points, Winning First of Three: Real-Time Updates

The Dow Jones Industrial Average rose for the first day in three years after August retail sales came in better than expected and another inflation reading wasn’t as bad as feared.

The Dow Jones rose 204 points or 0.5%. The S&P 500 gained 0.6%, while the Nasdaq Composite gained about 0%.7% more.

The producer price index for August was warmer than expected. It rose 0.7%, more than the 0.4% gain expected by economists surveyed by Dow Jones. However, excluding food and energy, core PPI rose 0.2%, in line with estimates.

This came after the August consumer price index showed on Wednesday that the core CPI, which excludes food and energy, was slightly higher than expected.

Retail sales were better than expected in August, rising 0.6% from 0. Economists expect an increase of 1%. Excluding cars, retail sales rose 0.6% last month, beating expectations of 0.4%.

With the Federal Reserve expected to stay on course at its September policy meeting, the European Central Bank on Thursday was expected to raise interest rates by a quarter of a percentage point. However, the ECB noted that inflation is falling and hinted that this could happen with the end of the interest rate hike campaign.

According to CME’s FedWatch tool, US futures price data suggests interest rates have a 97% chance of remaining unchanged next week.

Even if the central bank keeps interest rates stable this time, markets are expected to remain very volatile in the coming months. Data on federal funds futures prices suggests there is about a 40% chance of raising rates at the November meeting.

Similar to the preceding week, the statistics persist in illustrating a robust American scenario. In regards to the economy, Mike Loewengart from Morgan Stanley’s Global Investment Office expressed his viewpoint. “The problem, as always, is that this could lead to continued inflation, as evidenced by the better-than-expected PPI data.”

“The Fed will most likely remain unchanged next week, but if the economy continues to surprise positively, “It is impossible to predict what it will do after the last two monetary policy meetings this year. “A further price increase will certainly be planned and a price cut is not in sight,” added Löwengart.

Chip design company Arm began trading Thursday after its initial public offering at $51 per share. Investors are hoping the biggest tech launch of the year will revive the dormant tech IPO market.

Adobe is expected to report its quarterly results after the market closes on Thursday.

 

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