![]() ![]() And by and large, that's what you saw last week as well," Mills said. "You saw this in the June rally as well where the market kind of bought into this possibility of a Fed pivot or a less-difficult outcome for the economy, but the bond market never really did. The 10-year Treasury yield is up about 4 basis points on Monday afternoon, trading near 3.364%. ![]() ![]() Investor positioning and economic data may have also helped the recent rally, Mills said, but the stubbornly high yields in the Treasury market are a cause for skepticism. I don't know if it is strong enough to call it a very clear reversal, but in terms of the breadth and strength of the bounce it has been reasonably encouraging," Mills said. "That 3,900 level on the S&P 500 is important technically, and the move that we saw off of it has been fairly strong at this point. The continued rally for the stock market looks reasonably healthy in the short term, but it is probably too early to call for the all-clear, according to Jeff Mills of Bryn Mawr Trust. That would be the highest level for the rate since early 2008. If the Fed follows through with the market's expectation, that will take the central bank's benchmark funds rate to a range of 3%-3.25%. The central bank is widely expected next week to approve its third consecutive 0.75 percentage point interest rate hike. While both numbers point to slower gains in prices, Fed officials have said in recent days that one month's report won't sway them in their fight against inflation. But for core, it would be the second straight month of a 0.3% increase. Including those two sectors, so-called headline CPI is projected to decline 0.1% for the month but still be up 8% on an annual basis.įor headline CPI, it will be the second month in a row with little change, after July showed prices flat. It's expected to show that prices excluding food and fuel rose 0.3% from July and 6% from a year ago. The consumer price index is due out Tuesday at 8:30 a.m. Inflation likely eased a bit in August as gasoline prices declined, but probably not enough to make a difference for Federal Reserve policymakers. Lea la cobertura del mercado de hoy en español aquí. ![]() "And at that point the main threat in the short term and in the medium term will be whether earnings continue to deteriorate." "The combination of the somewhat surprising successes in Ukraine, and the possibility of a very favorable inflation headline that maybe even shows a decline for last month, may put us into a situation where we have a continued rally here," said Phillip Toews, CEO of Toews Asset Management. Many traders are also optimistic about the August consumer price index report, which is scheduled for release on Tuesday morning. dollar and military success by Ukraine, appear to be boosting investor sentiment. Fed officials have reiterated in recent weeks they will keep hiking rates to fight inflation even if it hurts economic growth.īut some recent developments, including a weakening U.S. 20-21 meeting of the Federal Reserve, where the central bank is expected to deliver its third consecutive 0.75 percentage point rate hike in an effort to combat high inflation. Stocks have been volatile ahead of the Sept. stocks, as all three major averages snapped a three-week losing streak on Friday. The Nasdaq Composite added 1.27%, wrapping the session at 12,266.41.Įnergy was the top sector, but the rally was broad, with Bristol-Myers Squibb gaining 3.14% and tech stalwart Apple adding 3.85%. The Dow Jones Industrial Average gained 229.63 points, or 0.71%, to end at 32,381.34. Stocks rose on Monday as a weaker dollar and growing confidence that higher prices have peaked helped Wall Street's relief rally continue ahead of a key inflation report. ![]()
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