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The US$ Stock Market Extends Its Gains On Signs Of Steady Inflation

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2 years ago

August 11, 2022

The US Stock Market Extends Its Gains On Signs Of Steady Inflation

(CTN News) – On Thursday, US stocks rose, extending gains from the previous session after lower inflation data for the world’s largest economy.

S&P 500 futures gained 0.6 percent after the opening bell, having closed 2.1 percent higher on Wednesday.

Taking its gains from the low in mid-June to 20.7 percent, the Nasdaq Composite rose 0.6 percent after closing up 2.9 percent. It was slower than June’s 9.1% increase and below economists’ expectations of Us stocks.

Prices paid to US producers for goods and services dropped by 0.5 percent in July, on the back of lower petrol prices.
This marked the first monthly decline for the US producer price index since April 2020.

On an annual basis, prices rose 9.8 percent in July — lower than economists’ expectations of a 10.4 percent increase and below June’s figure of 11.3 percent.

Before the Federal Reserve’s September meeting, investors will closely monitor inflation data for clues about whether it will raise borrowing costs to slow price growth.0.75 percentage points were raised by the Fed over the summer.

Liz Ann Sonders:

“I’m not sure this alone is a needle mover,” said Liz Ann Sonders, chief investment strategist at Charles Schwab, in relation to the PPI data. “It’s more just a confirmation that maybe the peak is in.”

In European equity markets, the regional Stoxx 600 slipped 0.1 percent lower. Germany’s Dax gained 0.1 percent. London’s FTSE 100 lost 0.6 percent. In Asian markets, Hong Kong’s Hang Seng closed up 2.4 percent.

“It’s encouraging for investors that you see some cooling of inflation but one swallow doesn’t make a spring,” said Guillaume Paillet, a multi-asset portfolio investor at Aviva.

Pointing to strong US labor market data released last week. “You’ve got to be cautious.

”Other Fed officials also expressed caution, with Charles Evans, the president of the Chicago Fed, saying on Wednesday that inflation remained “unacceptably” high.

In currency markets, the dollar lost a further 0.4 percent against a basket of six currencies after declining on Wednesday, with the euro and yen holding on to gains made after the inflation data.

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