2023-11-16 16:51:08
© Archyde.com. New York Stock Market Situation: Dow Jones closed up 163.51 points, speculating that the Fed will stop raising funds following inflation was lower than expected.
InfoQuest – The Dow Jones New York Stock Exchange Index closed positive on Wednesday (Nov. 15) following the United States released the latest inflation data that was lower than expected. This makes investors confident that the Federal Reserve (Fed) will end the cycle of raising interest rates. In addition, the market was also supported by a surge in retail stocks. After Target Company Major U.S. retailer announces higher-than-expected earnings
The Dow Jones Industrial Average closed at 34,991.21 points, up 163.51 points or +0.47%, the S&P500 index closed at 4,502.88 points, up 7.18 points or +0.16%, and the Nasdaq index closed at 14,103.84 points, up 9.46 points or +0.07%.
The US Department of Labor revealed that The Producer Price Index (PPI), which measures inflation in producer spending, rose 1.3% year-on-year in October. This was lower than analysts’ expectations of 1.9% from 2.2% in September. On a month-to-month basis, the PPI fell 0.5% in October, the biggest drop since April. September 2020 and contrary to analysts who expected an increase of 0.1%.
The data is in line with the US Consumer Price Index (CPI) in October, which rose 3.2% year-on-year. This was lower than analysts’ expectations of 3.3% from 3.7% in September.
The US Department of Commerce revealed that Retail sales fell 0.1% in October, the first decline since March. following increasing 0.9% in September.
Jay Hatfield, an analyst at Capital Advisors, said the CPI and PPI were lower than expected. Including retail sales falling for the first time in seven months, factors supported expectations that the Fed will end its cycle of raising interest rates. Moreover, the data confirms that the Fed is close to achieving its goal of keeping the economy slow down gradually or soft landing
CME Group’s FedWatch Tool indicates investors remain 100% positive that the Fed will hold interest rates steady at its December meeting. And it is expected that the Fed will start cutting interest rates at its May meeting. 2024, which is earlier than expected that the Fed will cut interest rates in June. 2024
Technology stocks which are sensitive to interest rates rose following the United States revealed the CPI index was lower than expected, and continued to rise last night following the PPI index also came out lower than expected. Specifically, stocks of technology companies in the “Magnificent 7” group, which includes Microsoft, Apple, Alphabet, Amazon, Tesla, Meta Platforms and Invidia.
Retail stocks rebound After Target revealed higher-than-expected profits and revenues in the 3rd quarter of 2023, Target shares soared 17.7%, Macy’s shares rose 7.5%, Nordstrom shares rose 5.7%. Walmart rose 1.3%.
Russell 2000 Index, which is a stock index of companies with low registered capital. Continuously improving This is driven by hopes that an end to the Fed’s cycle of rate hikes will help revive small businesses.
As for energy stocks, they dropped. After WTI oil prices fell 2% last night following the United States revealed crude oil stock numbers rose more than expected. This indicates weaker demand.
The market also received support from the US House of Representatives passing a temporary budget bill and sending it to the Senate for consideration. Before sending it to President Joe Biden to sign into law by Friday, Nov. 17, to avoid a government shutdown or shutdown.
Investors are keeping an eye on the meeting between US President Joe Biden and Chinese President Xi Jinping in San Francisco. United States state of California Investors expect that the talks between the two leaders will help resolve conflicts in both the military and trade areas.
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