NEW YORK (awp international) – In the US, the record run on Wall Street continued on Wednesday. There is relief that the inflation rate in the United States is stagnating, albeit at a high level, it said.
Shortly after the start of trading, the Dow Jones Industrial climbed to just below the 35,500 mark. Most recently, it increased by 0.50 percent to 35,442.21 points. The S&P 500 rose to just under 4450 points and recently gained 0.22 percent to 4446.43 points. The technology-heavy selection index Nasdaq 100 advanced 0.22 percent to 15,085.97 points. His last record high so far comes from last week.
“The big surprise with US inflation did not materialize,” wrote portfolio manager Thomas Altmann from asset manager QC Partners. In a month-on-month comparison, the upward trend in prices has also slowed significantly. Compared to the same month last year, consumer prices rose 5.4 percent in July. Economists had expected a slight decline, but the deviation was apparently of little consequence in the market. The rate had already been 5.4 percent in June.
“The pressure to act on the US Federal Reserve (Fed) has not increased, but it has not decreased either,” continued Altmann. The Fed will not be able to avoid communicating a schedule for reducing monthly bond purchases to stimulate the economy either at the central bankers’ meeting in Jackson Hole or at least at one of their next meetings. Such a tightening of monetary policy can have a detrimental effect on the stock market because other asset classes then become more attractive again./ck/he
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