© Reuters 5 big things to know in financial markets today: Focus on Fed’s favorite inflation gauge Debt ceiling appears to be making progress
Investing.com – Here are the top 5 things you need to know about the financial markets on Friday, May 26:
1.debtupper limitnegotiate againobtainEnterexhibitionnews that an agreement is close
U.S. President Joe Biden (Joe Biden) said on Thursday (25th) that his talks with House Republican leader Kevin McCarthy (Kevin McCarthy) had made progress, adding that their teams would continue to meet. However, McCarthy emphasized that no agreement has been reached yet, and the two sides still have differences on spending.
However, according to the media citing an unnamed U.S. official, Biden and McCarthy are gradually approaching an arrangement that would cancel the $31.4 trillion borrowing limit for the next two years and impose restrictions on spending on most projects. upper limit.
However, the agreement is not final and still needs congressional approval to keep the federal government from defaulting. The Treasury previously said it could run out of debt repayment funds on June 1. If the U.S. government defaults, the U.S. economy could fall into recession and trigger global market turmoil.
Next Monday (29th), the U.S. House of Representatives and the Senate will be adjourned for Memorial Day, but members are now on standby. If the debt ceiling agreement can finally be reached, members will return to Congress to vote.
2.U.S. stock futures edge up
U.S. stock futures rose slightly in premarket trading on Friday, as investors continued to await progress in debt-ceiling talks and the release of the Federal Reserve’s favorite inflation data later in the day.
Investing.com’s U.S. stock quotes show that as of 18:39 Beijing time (6:39 a.m. Eastern Time), blue-chip stocks rose 17.5 points, or 0.05%, and rose 3.7 points, or about 0.09%, to Technology stocks mainly rose 36.4 points, or 0.26%.
In the last trading day, the chip giant NVIDIA (NASDAQ: ) surged, driving the U.S. stock market soaring, but NVIDIA’s competitor Intel (NASDAQ: ) fell more than 5% that day, dragging it down.
3. PCEThe price index, the Fed’s favorite inflation gauge, is coming soon
The Fed’s preferred inflation gauge is due to be released on Friday, after a flurry of data earlier this week has persuaded some investors to reassess their forecasts for the central bank’s future rate path.
Analysts predict that the annual rate in April is expected to reach 4.6%, which is expected to be flat.
At the same time, growth is expected to be 3.9%, down from 4.2% in March; it is expected to be 0.4%, faster than the previous 0.1%.
Fed officials focused more on core data, which excludes more volatile items such as energy and food, than headline data.
It remains uncertain whether policymakers will pause rate hikes at their June meeting. On Thursday, weaker-than-expected releases and an upward revision to the first quarter in the U.S. fueled bets that the Fed could continue its tightening cycle.
4.Gold prices fall for third straight week
Gold prices rose on Friday as the dollar fell following news that debt ceiling talks had progressed.
As of 18:39 Beijing time (06:39 am Eastern Time), Investing.com Commodity Markets showed that it rose $11.5, or about 0.59%, to $1,952.35 per ounce; the price rose $8.75, or about 0.45%. , at $1,952.45 an ounce.
However, gold prices were still on track for a third straight week of losses. Gold took a sharp turn after hitting a record high in early May, and the banking crisis eased, weakening gold’s safe-haven status.
5.oil onrise，OPEC+Will itcut productionconstant discussion
Oil prices rose on Friday, reversing the previous session’s weakness when Russia played down expectations that OPEC+ would cut output further at its meeting next month.
Russian Deputy Prime Minister Alexander Novak said on Thursday he did not expect OPEC+ to take new measures at its June 4 meeting. His comments undercut Saudi Energy Minister Abdulaziz bin Salman’s warning to short sellers earlier this week to “be careful”.
As of 18:39 Beijing time (6:39 a.m. Eastern Time), Investing.com’s commodity prices showed: up 45 cents, or 0.63%, to $72.28 per barrel; up 24 cents, or 0.31%, At $76.50 a barrel.
On the other hand, signs that supply in the United States, the world‘s largest oil consumer, is tightening, and then demand is rising, supported the rise in oil prices.
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Compiler: Liu Chuan