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Wall Street Green Ahead of US Inflation Release

Wall Street Green Ahead of US Inflation Release

The US stock market or Wall Street rose stock market on Monday September 12, 2022 as the US weakened and price confidence peaked.

This prompted Wall Street to continue its rally on the US inflation release. At the close on Wall Street, the Dow Jones added 229.63 points, or 0.71%, to 32,381.34. The S&P 500 index rose 1.06% to 4 The Nasdaq index rose 1.27% to 12,266.41.

Energy stocks led the gains. Bristol-Myers Squibb rose 3.14% and Apple 3.85%. The move extended Wall Street's gains.

That's when the benchmark's average snapped a three-week streak of losses on September 9, 2022. Stocks have been volatile ahead of the US Federal Reserve or Central Bank meeting on and September 21, 2022.

The central bank is expected to raise interest rates by basis points for the third consecutive time. This is done as a effort to reduce inflation Fed officials have made it clear these weeks that they will continue to raise interest rates to counter inflation, even if it depresses economic growth.

However, a number of recent developments, including a weaker US and Ukrainian military success, boosted investor confidence. Many players in the market are also bullish on the August Consumer Price Index report due out Tuesday morning.

"The combination of the somewhat surprising success in Ukraine of the probability and the probability of very favorable headlines that might even suggest a drop in the past month could put us in a situation we have a sustained recovery here,” said Toews Asset Management. quoted as saying. from CNBC , Tuesday .

He added that at this point, the main short-term and medium-term threat was whether earnings continue to deteriorate.


Wall Street Green Ahead of US Inflation Release

Meanwhile, inflation may ease slightly in August with lower gasoline prices. However, this was not enough to make the difference the Fed. The consumer price index will be released on Tuesday local time.

Inflation excluding food and is expected to increase by 0.3% from July 2022 to 6% from year on year. Including both sectors, headline inflation is expected to be 0.1% for the month, but still up year-over-year.

For the consumer price index, it will be the second month in a row with little change, after a flat July. However, core inflation will rise 0.3% for the second straight.

On the other hand, despite the slowdown in inflation, Fed officials have signaled in the past days that the one month will not influence policies aimed at curbing The US central bank will raise interest rates by basis points for the third consecutive time.

If the Fed follows market expectations, it will set the central bank's benchmark interest rate in a range of 3 to 3.25%. The interest rate will be the highest level since early 2008.

Previously, the United States stock market or Wall Street rallied on Friday, September 9, 2022 trading. Thus, Wall Street recorded a solid weekly performance having been pressured by the effects of the US central bank or the Reserve

At the close of Wall Street, the Dow Jones index jumped 377.19 points, or 1.19%, to 32,151.71. The S&P 500 index rose 1.53% to 4 The Nasdaq index added 2.1% to 12,112.31. DocuSign shares jumped more than 10 percent after the company reported earnings that beat expectations. The company also released a third-quarter 2022 revenue forecast that was higher than

Wall Street Green Ahead of US Inflation Release

The average of the three reference indices put a three-week losing streak. The Dow Jones index is up by 2.66% this While the S&P 500 index rose 3.65 percent. The Nasdaq index added 4.14%. Stocks have been volatile lately on hopes of a 0.75% rate in September 2022.

This is after the chairman of the Federal Reserve Jerome Powell said he was strongly committed to lowering inflation.

"The case for the current bear market is that the will continue to tighten monetary policy, taking liquidity out of the market and causing stock market corrections," said Chief Investment Officer David CIBC Private Wealth US.

He added that the market recovery this showed the continued resilience of the economy, underpinned by favorable economic reports. However, Donabedian fails to see that the stock has bottomed out as the market declines.

"Indeed, the journey to the next bull market in time and will be marked by a series of ups and downs," he said. Meanwhile, oil prices rose as Russian President Vladimir Putin cut supply.

West Texas Intermediate oil prices rose 3.57% to $86.53 a barrel and Brent oil prices rose 3.59% to $92.37 a barrel. However, over the week, prices have tended to weaken.


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