Text size
Federal Reserve Chairman Jerome Paul said the federation would take action against inflation. Today’s inflation data could be as high as 40 years.
Images by Brendan Smilowowski-Pool / Getty
The key to inflation is not only the year-over-year increase but also the signal – pleased investors – the rate may fall soon, stocks are green on Wednesday, barely.
Of
Dow Jones Industrial Average
Earn 40 points or 0.1%. Of
S&P 500
0.3% increased, and tech-heavy
Nasdaq Composition
Gained 0.2%. Most of the shares in the S&P 500 have gained.
Inflation – Consumer-Price Index – rose 0.5% in December a month earlier, and has risen to 7% over the past year, according to the Department of Labor. That annual profit was similar to the rapid inflation recorded in the economy since mid-1982 and the forecast for economists.
There is good news, but it seems likely that inflation will reach its peak.
One of the reasons for the high number was a simple consumer-price comparison with December 2020 before the White House signed another stimulus package and the release of Covi-19 vaccines.
Another reason was that Wednesday’s result was in line with expectations. According to John Kolovos, chief technical adviser for macro-risk advisers, many expected it to be more than 8 percent.
“The market is stable because 8.5% of the damage has not been done,” Kolovos said.
Another force that can reduce inflation is the emergence of demand in the world economy, which has made products more accessible.
The prospect of lower inflation means that while markets expect the Federal Reserve to raise interest rates three times this year, they are unlikely to get more. This, in turn, provides an opportunity for greater economic growth.
The bond market, for its part, is reflecting. 2-year Treasury output, which forecasts inflation over the next two years, remains at 0.91%, a level that has struggled to rise over the past few trading sessions.
Ten-year treasury production fell 1.74% on Monday. This is helping technology stocks get in the way, as those investors have been making huge profits online for many years, as technology assessments, especially long-term bond yields, change.
Earlier in the day, market strength was building on Tuesday’s rally, according to Federal Reserve Chairman Jerome Paul. Paul did not imply that the federation would grow faster than expected.
Markets are still unsure about monetary policy, which is one of the reasons why all three major U.S. indexes fell behind Wednesday’s highs.
Exactly how much the federation is pulling back is the X Factor. The first price increase is not in place – and it takes a lot of time to get down after several walks. “It may be too late,” Colovos said. “This is a transition. This internal dialogue is going to take place in the market at interest rates.”
Overall, “monetary policy instability has recently increased and is now at an all-time high since the outbreak,” wrote Dennis Debussher, founder of 22 V Research. For now, he added, “We do not condone bullying as a result of uncertainty over monetary policy.”
Overseas, London
FTSE 100
Pan-European Stockx 600 index rose 0.7%, up 0.8% from the highest levels seen after the February 2020 Covide-19 disaster.
In Hong Kong,
Hang Seng Index
Showed an increase of 2.8 percent. As inflation in the world’s second-largest economy slows, China’s overall social finances are expected to dominate Asian markets.
Among commodities, oil prices strengthened on Tuesday, following the announcement by Paul. West Texas Medium futures contracts rose 1.7 percent to $ 82.
Crypto currencies were also high.
Bitcoin
– Leader crypto – up 2.6%, trading below $ 44,000. A little peer
Ether
Earned 4%.
Here are six active stocks.:
Biogen (BIIB) Share decreases by 6.7% Shares Eli Lily (LLY), which is working on the same drug, decreased by 2.5%.
DD Global According to DDI, it received 1.2% of the reports List of Hong Kong in the second quarter of 2022.
Rocket Lab America (RKLB) Shares rose 5.4% after Morgan Stanley acquired start-up coverage at a buy-in ratio.
Snowflake (SNOW) Shares increased 2%. The software company shares are in the throes of a major technology downturn.
Dish Network (DISH) later increased by 2.8% The New York Post reports that it is once again in talks with DirecTVWhich holds the majority.
AT&T (T) The years-long estimate could not be reached.
Write to Jack Denton at jack.denton@dowjones.com and Nicholas Jasinski at nicholas.jasinski@barrons.com
Saat ini belum tersedia komentar.