U.S. Stock Indices Rise with Hopes of Stabilizing Interest Rates: What to Expect for Stocks, Gold, and Inflation

Investing.com – U.S. stock indices rose on Monday, as traders hoped for firm prices at their Tuesday-Wednesday meeting.

It rose 16 points, or 0.05%. While the S&P 500 rose 0.2%, it rose 0.6%. Monday’s moves took the S&P 500 back above 4,300, near its highest level since August.

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Lucid Motors shares (NASDAQ:) rose during these moments, by 3.8%, to $6.45.

Markets have come to expect the Fed to hold interest rates at this week’s meeting, with traders pricing in a 74% chance of no increase.

The central bank will eventually decide to skip a June rate hike, according to Certuity co-chief investment officer Dylan Cramer, but the Fed likely won’t finish raising rates overall.

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Tuesday’s inflation data could help bolster the case for subdued inflation, as economists expect the consumer price index to show inflation fell to an annualized rate of 4% in May, down from 4.9% in the previous month.

However, the market expectation is that Fed officials will reaffirm their commitment to fighting inflation and return with a final rate hike at the July meeting before locking in rates for the rest of the year. The US central bank has raised interest rates 10 times since the start of its tightening campaign last year.

Expectations .. Stocks to where?

Analysts at Goldman Sachs (NYSE:) strengthened their expectations for the “” index until the end of 2023, noting that the expected rise in US stocks will not be limited to major technology companies.

The bank’s analysts, including David J. Kostin, said in a research note dated June 9 that the index would end 2023 at 4,500, compared to a previous forecast of 4,000.

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This means an increase of 4.7% compared to last Friday’s closing level, and nearly half of the return that consensus forecasts over the next 12 months, according to Bloomberg.

Analysts predicted a rise in a broad range of stocks, not just technology companies, as historical precedents saw a narrowing of the gap between stocks followed convergence in other sectors of technology thanks to a broader revaluation. Since 1980, the index witnessed 9 major precedents in which this scenario was repeated, followed by other stocks converging on the level of technology companies, which eventually gave a boost to the entire index.

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It fell 0.4% to $1,969 an ounce.

While spot contracts fell by 0.3% to 1955 dollars an ounce.

On the other hand, it rose 0.1% to 103,240 points.

It fell by 2.6% to $72.80 a barrel.

Texas crude fell 3.15% to $67.97 a barrel.

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