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Investing.com – US stock indexes jumped during these trading moments on Wednesday, as traders welcomed new data showing inflation rose less than expected last month.
It rose by 270 points, or 0.8%. The “500” rose 1%, while it rose 1.4%.
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Stock moves now
The S&P 500 reached a new high for 2023 and its highest level since April 2022.
Banking stocks also jumped, with Citigroup and Goldman Sachs (NYSE:) shares up 3.6% and 3.1%, respectively.
Lucid Motors (NASDAQ:) shares fell 12.35% to $7.12. While Tesla (NASDAQ:) rose 1.5% to $273.5. Alibaba Group Holding Ltd (ADR) rose 2.8% to $93.89.
The second-quarter earnings season kicks off later this week with results from “systemically important financial institutions” such as JPMorgan (NYSE: Chase), Wells Fargo, Citigroup and BlackRock. PepsiCo (NASDAQ:) – Delta Air – and United Health (NYSE:) –
Wall Street banks in general are expected to report higher-than-expected earnings, as higher interest payments offset the contraction in deal-making.
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inflation data
Record (excluding food and energy) on an annual basis of 4.8%, while expectations were for it to be recorded by 5%, after it was recorded in May by 5.3%, and it was recorded by 0.2%, while expectations were for a record of 0.3%, after it recorded an increase of 0.4 % In May.
And the index for the month of June recorded 3%, and expectations indicated that it would rise by 3.1%, after recording 4% in the month of May.
As for Ali by 0.2% in June, it was expected to rise by 0.3%, after rising by 0.4% in May data.
“I think it’s a good report,” said Megan Hornemann, chief investment officer at Verdence Capital Advisors. “Inflation is going the way the Fed wants it to go, but I don’t think we’re ready to say they’re going to be able to cut rates.”
“There are still three areas of inflation that the Fed looks closely at – service inflation, wage inflation and housing inflation, and those three things remain uncomfortably high for the Fed,” she added.
June’s data – another measure of inflation – is scheduled for release on Thursday before markets open on Wall Street.
Both price indicators are watched for evidence of declining inflation, which investors take as possible harbingers of how the Federal Reserve will move interest rates in the future. And the market is pricing in a roughly 92% chance that the Fed will raise interest rates at the next July meeting by 25 basis points.
US yields also declined, with the 10-year Treasury yield now at 3.899%, down 8 basis points. The two-year interest rate, which usually moves in line with interest rate expectations, fell 14.3 basis points to 4.753%.
The Fed’s recent statement
After the release of the US CPI data, a member of the US Federal Reserve said, commenting on the inflation data released a moment ago, “Inflation is still high and far from the US Fed’s target.”
Thomas Barkin, president of the Federal Reserve Bank of Richmond, said demand remains high at the same time supply is constrained, and the rebalancing process has been slow.
He also noted that the Fed is trying with all its tools to control inflation.
And Barkin continued: “The return of inflation to the 2% target requires more work from the Fed, stressing that the central bank is ready to tighten monetary policy more if the data does not indicate a slowdown in inflation towards the target.”
markets now
It rose by 1.2% to $1,960 an ounce.
While spot contracts rose by 1.18% to 1955 dollars an ounce.
On the other hand, it fell by 1% to 100,405 points.
Brent crude oil futures breached $80 a barrel for the first time since May on Wednesday after US inflation data. As US crude rose by 1% to $75.58 a barrel, it reached $80.01, up by 0.77% during the day’s trading.
2023-07-12 15:08:00
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