US stock market in green zone waiting for Fed
2022.12.12 11:20
US stock market in green zone waiting for Fed
Budrigannews.com – Investors were preparing for inflation data and the Federal Reserve’s policy decision amid concerns of a looming recession, but U.S. stock indexes began the week on a positive note.
A gain of 2.1% in Microsoft Corp. (NASDAQ:) shares contributed significantly to Monday’s rise in the major Wall Street indexes. as a result of the software company’s intentions to acquire a 4% stake in the London Stock Exchange Group (LON:).
As the economy exhibits signs of strain as a result of the central bank’s recent policy actions, market participants anticipate that the central bank will slightly deviate from its aggressive rate-hike path.
Money market participants anticipate a 93% likelihood of a 50-basis-point rate hike to 4.25-4.50% and a terminal rate of 4.96% by May 2023 following the Fed’s two-day meeting on Wednesday.
The core rate, which excludes volatile food and energy prices, is anticipated to have moderated to 6.1% from 6.3% in October, according to data due on Tuesday. Consumer prices are expected to have increased by 7.3 percent on an annual basis in November, down from a rise of 7.7 percent in the previous month.
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Friday’s slightly higher-than-expected producer price reading from November will be followed by the numbers. Despite a rise in service costs, the trend is slowing, with annual inflation at the factory gate posting its smallest increase in one and a half years.
Randy Frederick, managing director of trading and derivatives for Charles Schwab (NYSE:), stated, “There’s certainly the concern that potentially high inflation could create the perception that the Fed might be more aggressive in its tightening.” in Austin, Texas.
“I think it (economic data) does change the prospect of what might happen further down the road,” although “the market is certain that we’re going to get a half point hike.”
Sunday, Treasury Secretary Janet Yellen acknowledged the possibility of a recession while predicting a significant reduction in price pressure in the United States in 2023.
The main Wall Street indexes have fallen this year due to concerns that aggressive rate hikes could cause a recession in the United States. The Nasdaq and are on track for their worst annual performance since 2008, having fallen by 29.5% and 17.2%, respectively, thus far in 2022.
The S&P 500 was up 12.74 points, or 0.32%, at 3,947.12, and the was up 28.94 points, or 0.26%, at 11,033.56 at 10:05 a.m. ET. The was up 165.64 points, or 0.49%, at 33,642.10.
Energy and technology stocks led seven of the 11 major S&P 500 sector indexes in the green.
The majority of rate-sensitive stocks, such as Apple Inc. (NASDAQ:), NASDAQ: Nvidia Alphabet and Corp (NASDAQ:) Inc gained anywhere from 1% and 1%.
Among different stocks, Rivian Auto Inc lost 2.7% after the organization stopped its association conversations with Mercedes-Benz Vans on electric van creation in Europe.
Horizon Therapeutics, a biotech company (NASDAQ:) Following an offer to buy out Plc from Amgen Inc. (NASDAQ:), in contrast to Coupa Software (NASDAQ:) A media report that Thoma Bravo LLC was in advanced talks for an acquisition caused Inc to surge 26.7%.
On the NYSE, there was a ratio of 1.08 to 1, and on the Nasdaq, there was a ratio of 1.01.
The Nasdaq saw 29 new highs and 136 new lows, while the S&P index saw no new 52-week highs or lows.
