NEW YORK, New York.- This Wednesday, the day on Wall Street opened with gains following the publication of the Consumer price index (CPI) of USA in Maywhich fell one tenth compared to April, to 3.3%, and keeps analysts awaiting the decision of the Federal Reserve Over the interest rates.
At the opening
Ten minutes following the opening of the New York Stock Exchangehe Dow Jones Industrial Average rose 0.76% to 39,041 points; the selective S&P 500 advanced 0.94%, to 5,425 points, and the technology Nasdaq grew 1.33% to 17,172 units.
What is affecting the markets today?
The timid descent of the inflation rate in may This confirms the stagnation of this statistic, which has been above the Fed’s 2% target all year despite high interest rates.
In the last 12 months, the increase in underlying inflationwhich excludes volatile energy and food prices, was 3.4%, two-tenths below the April data, and the lowest figure since April 2021.
The Federal Reserve itself ends its two-day monthly meeting today to determine the progress of the monetary politics and with analysts waiting to see whether the Open Market Committee The issuer believes that there is room for rate cuts this year.
The American analyst Tom tries anticipated in his daily report ‘The Sevens Report’ that “a rebound above 3.6%” would have been a “very negative surprise,” but added that, even if this relaxation in inflation were to occur, “there is zero chance” that the “optimistic or pessimistic” decision already taken by the Fed, which will be announced on Wednesday, would change.
On the other hand, the Office of Economic Policy of the U.S. Department of the Treasury issued an analysis revealing that “American companies are doing well not only because their profits are high, but because they are investing those profits productively” following Covid.
“Companies have invested $430 billion more since 2019 than if investment had followed previous patterns (…) despite the high interest rates which increases borrowing costs,” the report details.
Regarding the reference of the 10-year Treasury bond It was also influenced by the expected Fed meeting and fell back to 4.277%.
By sectors
Gains predominated, led by technology (2.33%), real estate (2.22%) and raw materials (1.16%); while only public services (-0.89%), essential goods (-0.49%) and health (-0.27%) opened in the red.
Among the 30 Dow Jones stocks, Apple (3.26%) – which continues to be driven by new implementations of artificial intelligence – and Home Depot (2.9%) led the gains, with Salesforce (-2.08%) and Procter & Gamble (-0.8%) falling the most.
Technology company Oracle, which specialises in developing cloud solutions, soared 12% following the opening, while Nvidia registered a 2.97% advance, as the new inflation data renewed investors’ appetite for risk.
In other markets, the Texas oil (WTI) opened this Wednesday with a rise to 78.22 dollars a barrel, following the Organization of Petroleum Exporting Countries (OPEC) yesterday maintained its demand forecasts, hoping for stable economic growth this year.
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2024-07-09 17:51:35
