The Thursday session at Wall Street ended with slight changes in the main indexes. Despite the deterioration of moods on the markets by the July reading of data on PPI inflation in the USA, S&P 500 recorded the third in a row an upward session.
Dow Jones Industrial at the closure fell by 0.02 percent and amounted to 44,911.26 points
S&P 500 at the end of the day increased by 0.03 percent and amounted to 6,468.54 points
Advertisement
Nasdaq Composite lowered by 0.01 percent Up to 21,710.67 points
The index of companies with medium capitalization Russell 2000 has dropped by 1.24 percent. Up to 2,299.08 points
The VIX index increased by 2.35 percent, to 14.83 points.
After the record levels of indexes previously recorded this week, Thursday moods in the markets were deteriorated by the July reading of PPI inflation data in the USA.
The PPI index in July increased by 0.9 percent In terms of month to month, and in terms of year on year it increased by 3.3 percent. Expected +0.2 percent and +2.5 percent After switching off food and energy prices, the PPI index increased by 0.9 percent. MDM, and RDR increased by 3.7 percent Estimated +0.2 percent and +3 percent
According to the CME Fedwatch tool, investors value a percent rate reduction. In September at 93 percent, i.e. only slightly below the level recorded the day before. However, a 50 BP reduction is not expected.
Sluch2025! It seems obvious that this is not enough to make the FED to give up another reduction of interest rates or starting a cycle of reductions. I think that people can think that although this was not a good PPI reading, we will have to see a few such results more before we really recognize that we are dealing with re -acceleration of inflation, which could prevent the Fed from the course ” – assessed Scott Ladner from Horizon Investments.
“The question for decision -makers, still unresolved, sounds what part of these price increases will be absorbed by wholesalers, retailers and distributors? This report is a strong confirmation of the rightness of the patient Fed's patient attitude regarding the change of monetary policy,” Carl Weinberg, the main economist at High Frequency Economics, wrote in the report.
Some analysts are not convinced that the FED will follow market expectations.
– The market is too sure that the FED will reduce interest rates next month, especially considering that inflation has been above the target for 53 months and clearly heads in the wrong direction – said Michael Brown, a senior research strategist in Pepperstone.
President of the Federal Reserve in San Francisco Mary Daly objected to the appeal for lowering interest rates by 50 pb. Next month, the day after the Secretary of the US Treasury Scott Bessent said that an aggressive reduction of half a percentage point is possible.
President of the Fed from St. Louis Alberto Musalem said on Thursday that he corrected his forecasts regarding inflation and risk for the labor market. However, he did not confirm whether in September a reduction in percent rates. by 25 pb.
– In the last two months I have increased my assessment of the potential weakness of the labor market and slightly reduced the assessment of inflation. However, I do not want to determine the result of the meeting – he said.
Musalem added that a reduction by 50 pb. It would be unjustified in current conditions, and in its assessment the inflationary effects of customs duties will probably go away after two or three quarters.
Piper Sandler estimates that despite the high valuations achieved, the actions still have upward potential.
“Investors should look for opportunities in sectors showing an upward trend, such as biotechnology, cyclical companies and regional banks” – the bank was written in Thursday.
Piper Sandler forecasts the S&P 500 level at the end of the year to 6,600 points.
Markets are waiting for the Friday meeting of US President Donald Trump with the Russian leader Vladimir Putin in Alaska.
Answering journalists in the Oval Office on Thursday, Trump announced that if the meeting with Putin is bad, it would end very quickly, if it is good, he will bring peace.
Trump added that he treated the Friday peak as a preparation for the next meeting with the participation of the Ukrainian leader of Wołodymyr Zelanski.
Intel's quotations increased by over 7 percent. After Bloomberg's reports that Trump's administration is considering buying shares in the company.
Deere shares fell by nearly 7 percent. After the company reduced the upper range of net revenue forecast for the whole year.
The Cisco Systems exchange rate dropped by 1.5 percent, despite the fact that the company forecasts revenues in the first quarter above estimates, because the boom for artificial intelligence increased the demand for network equipment from clients using the cloud.
After a strong growth on Wednesday, Paramount Skydance actions fell. The quotations went down by over 4 percent.
On the oil market, contracts for WTI will increase by 2.23 percent in September. up to USD 64.05 for a barrel, and October Futures on Brentures grow by 2.03 percent. up to 66.96 USD/B. (PAP Biznes)
KEK/ DOA/ PIU/
