The Dow was up more than 100 points today, supported by investor buybacks from yesterday’s heavy losses.
At 8:45 pm Thai time, the Dow Jones Industrial Average stood at 31,210.28, up 105.31 or 0.34%.
The Dow fell more than 1,200 points yesterday, the worst drop since June 2020. After the US revealed higher-than-expected inflation numbers. This will prompt the US Federal Reserve (Fed) to accelerate interest rates.
However, Wall Street trading was positive today with the release of the Producer Price Index (PPI), which fell for the second consecutive month.
Investors added to the forecast that the Fed will raise interest rates by 1.00% at this month’s monetary policy meeting. The US consumer price index (CPI) was higher than expected.
The inflation figure is the last important economic figure. Before the Fed holds a monetary policy meeting on September 20-21
CME Group’s latest FedWatch tool indicates investors weighed 36% that the Fed would raise interest rates from 1.00% to 3.25-3.50% at its September 20-21 meeting and that 64% would have weighed that the Fed would raise interest rates by 0.75%
Previously, investors had never thought that the Fed would raise interest rates by 1.00% at its September meeting. And it just started to weigh 18% yesterday after the US revealed higher-than-expected inflation numbers.
Also, Nomura analysts predicted that The Fed will raise interest rates by 1.00% at next week’s monetary policy meeting. After the US revealed inflation numbers that rose more than expected.
Analysts at Nomura and other financial institutions previously expected the Fed to raise interest rates by 0.75% this session. This will be the third consecutive 0.75% interest rate hike after a 0.75% increase in both June and July.
Meanwhile, Nomura expects the Fed to raise interest rates by 0.50% in both November and December. before increasing by 0.25% in February.
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