Wall Street hopes for inflation, which in the United States has peaked, finally starting to slow down. Futures on the main US stock indices point strongly upwards, after an initial indecision.
Wall Street struck its fourth consecutive earnings session yesterday.
The Dow industrial average rose 229.63 points, or + 0.71%, to 32,381.35; the S&P 500 advanced 43.07 points or + 1.06% to 4,110.42, while the Nasdaq Composite posted a rise of 154.11 points or + 1.27% to 12,266.42. At approximately 13.10 Italian time, the futures on the Dow Jones rose by 0.62%, those on the S&P 500 advanced by 0.66%, those on the Nasdaq recorded an increase of 0.64%.
Markets in trepidation awaiting the publication of one of the most important market movers of the week, coming from the macro front of the United States: US inflation, measured by the consumer price index, for the month of August.
The data will be announced today by the US labor market statistics department at 2.30 pm Italian time: the Bloomberg consensus predicts a slowdown in CPI inflation growth on an annual basis, from + 8.5% in July to + 8.1% .
On a monthly basis, a slowdown in prices of 0.1% is estimated which, if it materializes, would represent the first decline on a monthly basis in the data since May 2020.
The so-called ‘core’ CPI, that is US inflation purified of the more volatile components represented by energy and food prices, is expected to rise in August by 6.1% on an annual basis, more than + 5.9% in July.
“The duration of the rally (ongoing on Wall Street) will likely be determined by this week’s CPI index and the tone that emerges from the FOMC meeting (the Fed’s monetary policy arm) next week,” commented Mark Hackett. , head of Nationwide’s investment research division.
In a context in which the Federal Reserve is doing everything to put a stop to the inflation flare-up, with massive rate hikes, its chairman Jerome Powell will pay close attention to the CPI index, ahead of the next Fed meeting, which will make its rate announcement on 21 September.
Economists are betting on a new monetary tightening of 75 basis points.
The likelihood of a further maxi rate hike has further increased, climbing to 90%, according to CME Group’s FedWatch, which monitors the trend in fed funds futures, up from 69% two weeks ago.
Among the active stocks on Wall Street Oracle, which stands out with a rise of 1%, after the publication of the quarterly report.
Oracle announced that it reported an adjusted eps of $ 1.03, on revenue of $ 11.45 billion. Cloud business revenue stood at $ 3.6 billion, up 45% year-on-year.
Historical reshuffle in Peloton, the company among the Covid Winners of the Year, or 2020, with the boom in home fitness in that year. The group announced the departure of co-founders John Foley and Hisao Kushi. Former CEO John Foley stepped down from his position as executive chairman, while Hisao Kushi stepped down from the position of chief legal officer. The peloton stock is close to the lows in its history, having lost 69% since the beginning of the year. On the premarket, Peloton’s stock prices reduce losses and drop by just 0.18%.
Focus also on the stock of the Chinese auto group active in the electric car (EV) market, BYD. The stock received an assist from Barclays analyst Jiong Shao, who noted that the company was able to dethrone Tesla in the second quarter of this year in terms of deliveries.
The analyst expects an upside margin of up to + 40% for the stock.