US stock indexes rise on inflation data
2022.12.13 12:37
US stock indexes rise on inflation data
Budrigannews.com – After a smaller-than-expected rise in U.S. consumer prices raised hopes that the Federal Reserve could soften its aggressive stance on interest rate hikes, Wall Street’s main indexes rose on Tuesday, led by rate-sensitive megacap stocks.
In early trade, data showed that U.S. consumer prices barely increased in November amid declines in the cost of gasoline and used cars, resulting in the smallest annual increase in inflation in nearly a year. The benchmark reached a three-month high.
Rising wagers on a possible stoppage in the speed of Taken care of’s rate climbs drove the S&P 500 Development record and the S&P 500 Land file record to their most elevated in over two months.
Prices for Fed funds futures implied a better-than-even probability that the Federal Reserve will raise interest rates by half a point this week and by 25 basis points at its first two meetings in 2023, bringing the policy rate to 4.75 percent to 5.0%.
Josh Markman, a partner at Bel Air Investment Advisors, stated, “The Fed is going to continue to keep rates high, but there is a possibility that they’re going to pause later next year.”
“They (the markets) are looking six months out, where they are seeing inflation beginning to ease, and they are looking past the recession that is anticipated in 2023.” There will be a small rally for Santa Claus.”
Morgan Stanley (NYSE:) strategists The Fed is expected to end the rate hike cycle in March, resulting in a peak Fed funds rate of 4.625 percent.
Consumer prices increased by 7.1% annually in November, according to the Labor Department’s report, while the core rate, which excludes volatile energy and food prices, increased by 6.0 percent. Core rates were anticipated to rise by 6.1% and 7.3%, respectively, according to economists.
The readings come after the slightly higher-than-expected producer prices reading from last week, which indicated a trend moderation.
Investor anxiety has decreased, as evidenced by the CBOE volatility index, also known as Wall Street’s fear gauge, reaching a one-week low of 21.46 points.
The S&P 500 was up 55.72 points, or 1.40 percent, at 4,046.28, and the was up 221.88 points, or 1.99%, at 11,365.62 at 11:46 a.m. Eastern Time.
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NASDAQ: Moderna Inc shot up 23.8% after the biotechnology company’s exploratory immunization in mix with Merck and Co Inc’s blockbuster drug Keytruda showed promising outcomes in a skin malignant growth study.
(NYSE:) Pinterest After Piper Sandler upgraded the social media platform’s stock from “neutral” to “overweight,” Inc. saw a rise of 11.9%.
On the NYSE, there was a 5.16-to-1 ratio of rising issues to declining ones, while there was a 2.21-to-1 ratio on the Nasdaq.
There were 18 new 52-week highs and one new low for the S&P index, while there were 74 new highs and 93 new lows for the Nasdaq.
