Wall Street opens higher as inflation data fuels hopes for stable interest rates

Major Wall Street indices rose on Thursday after a long-awaited report showed a fall in inflation, raising hopes that the Federal Reserve may delay tightening monetary policy, while Salesforce shares rose on optimistic business earnings forecasts. A Commerce Department report showed that the Personal Consumption Expenditure (PCE) index, considered the Fed’s preferred measure of inflation, rose 3.3% yoy in July, in line with expectations of a 3.3% rise. Excluding the variable food and energy components, the core PCE price index rose 4.2% yoy in July, also in line with estimates.

traders & 039; According to CME Group’s FedWatch, bets on a failure to raise rates at the Fed’s September meeting remain unchanged at 88.5%, while the probability that the central bank will leave rates unchanged in November stands at 51.% Tool. “Look, inflation is going down, we’ve been saying that for a while”; said Tony Roth, investment manager at Wilmington Trust.

Amidst a heap of pending data, there’s a strong indication that the Fed will maintain its inaction come November, resulting in a cessation of rate hikes.
As markets continue to rally, Salesforce shares are up 5.1% on the cloud software provider’s upbeat revenue forecast, which has benefited from price increases and resilient demand.

The 10-year government bond yield fell, propelling shares of the top growth companies, including Alphabet, Microsoft, and Tesla, up 0.2%. to 06%
Nine of the 11 largest S&P 500 sectors remained profitable, while communications services and information technology posted strong gains of 0.4.0%. Looking at investor confidence, weekly jobless claims for the week ended August 26 fell to 228,000 from an estimated 235,000.
The data follows weaker-than-expected private sector employment growth on Wednesday, which indicated a softening in the market. jobs and pushed the S&P 500 to a three-week high.

The index fell 1.4% in August after falling in the first half of the month on concerns that interest rates would remain higher for an extended period.
At 9:41 a.m. EST, the Dow Jones Industrial Average was at 137. The S&P 500 index rose 35 points, or 0.39%, to 35,027.59 and was up 8.73 points, or 0.19%, to 4,523.60, and the Nasdaq Composite was up 38.44 points, or 0.27%, to 14,057.75.

Among other things, Dollar General lost 15. The 8tér discounter has revised its annual sales forecast for the same store. The value of Dollar Tree stocks among peers experienced a decline of 2.3%. Victoria’s Secret & With a minus of 4.0, the company expects a decline in sales in the third quarter.

Disappointing manufacturing data from China caused shares in US-listed Chinese companies JD.com and Baidu to fall 2.7% and 1%, respectively.8% or
The number of up issues outpaced down issues and was 1.69 to 1 on the NYSE and 1.49 to 1 on the Nasdaq.

The S&P index recorded nine new highs and two new lows in 52 weeks, while the Nasdaq recorded 33 new highs and 19 new lows.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top