Dow futures jumped more than 100 points today, indicating Wall Street will be higher tonight. As investors eased concerns about the Federal Reserve’s (Fed) rate hike.
At 7:35 p.m. Thai time, the Dow futures index gained 132 points, or 0.4%, to 33,436 points.
The Dow rose for the second day in a row, after the Consumer Price Index (CPI) and Producer Price Index (PPI) each pointed to US inflation having peaked. This will reduce the pressure on the Fed to accelerate interest rate hikes.
Investors cut expectations about the Fed’s interest rate hike by 0.75% at its monetary policy meeting in September. and raised expectations for a 0.50% interest rate hike after the US released CPI and PPI figures.
The latest CME Group’s FedWatch Tool shows investors weighed 63.5 percent that the Fed would raise interest rates by 0.50% to 2.75-3.00% at its Sept. 20-21 meeting and weighted only 36.5% at the Fed. will raise interest rates by 0.75%
Investors previously weighed 68.5 percent that the Fed would raise interest rates by 0.75% to 3.00-3.25 percent at its meeting on September 20-21 and weighted only 31.5% that the Fed would raise interest rates by 0.50. %
Investors will also be keeping an eye on the Fed’s annual meeting in Jackson Hole, Wyoming, this month for signs of interest rate trends.
meeting in Jackson This year’s hole will take place Aug. 25-27, titled “Reassessing Constraints on the Economy and Policy”.
The meeting in Jackson Hole is a meeting that has received a lot of attention. by central bank governors, finance ministers, academics and financial experts from countries around the world will travel to attend the meeting The highlight will be at the then-Fed chair’s speech expressing his vision of the Fed’s monetary policy. and the US economic outlook
At this year’s Jackson Hole meeting, Fed Chairman Jerome Powell is expected to signal the direction of US interest rates. After inflation began to slow down in July.
In an earlier statement to Congress Mr Powell said The Fed is committed ‘Unconditional’ in price stabilization This indicates that the Fed is ready to take on the risks that may arise. so that the economy can avoid the dire situation of uncontrollable inflation causing long-term damage.
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