USA: Wall Street rallies. S&P 500 and Nasdaq highest since April 2022!
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US indices rallied at the end of the session on Wednesday, with the S&P 500 and Nasdaq at their highest levels since April 2022. Investors scrutinize the US CPI report for June for clues to the Fed’s future moves – the reading turned out to be lower than expected.
The Dow Jones Industrial closed up 0.25%. and amounted to 34,347.43 points.
The S&P 500 ended the day up 0.74%. and amounted to 4,472.16 points.
The Nasdaq Composite gained 1.15 percent. and closed the session at 13,918.96 points.
US consumer prices rose 3% in June. in terms of y/y, and m/m they increased by 0.2 percent. +3.1% expected y/y and +0.3 percent mdm. Core inflation increased by 0.2%. m/m and 4.8 percent. y/y +0.3% expected mdm and +5 percent y/y
“The CPI turned out lower than expected for both headline and core inflation and the markets reacted positively to this report. The implications for monetary policy are clear, the Fed is at or near the end of its rate hike cycle,” said Art Hogan, chief market strategist at B Riley Wealth.
“Today’s CPI report is seen as crucial as it could determine whether one more Fed hike will be enough. However, there are reasons to be cautious as core inflation has been more persistent than in the past,” Elwin de Groot, head of macro strategy at Rabobank, wrote in the report.
Futures on the federal funds rate are at 92%. the likelihood of an interest rate hike. by 25 bps at the July Fed meeting.
Big banks, including JPMorgan, Citigroup and Wells Fargo, will start the season for publishing financial reports for Q2 in the US on Friday.
Netflix increased by 1%. after UBS raised the company’s price target to $525 per share from $390.
Nvidia gained 3.5 percent. after the Financial Times reported that chip designer Arm is in talks to bring Nvidia as a lead investor ahead of its planned IPO.
Cisco Systems fell 2.5 percent. – BofA downgraded the recommendation for the company’s shares to “neutral” from “above market”.
In oil, August WTI futures are trading at $75.95 a barrel, up 1.5%, while September Brent futures are up 1.17%. to USD 80.33/b. (PAP)
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