The Futures of US shares. UU. They saw a slight increase on Wednesday when investors reviewed recent data on consumer prices, which is expected to influence the interest rate decisions of the Federal Reserve. The futures for the S&P 500 and Nasdaq rose approximately 0.2%, while those of the Dow Jones industrial average remained stable.
The consumer price index (CPI) for July showed that consumer prices increased by 2.9% compared to the previous year. This is the first time since 2021 that the general inflation rate has fallen below 3%. The “central” CPI, which excludes food and energy costs, increased 3.2% year after year. Both figures were consistent with the expectations of Wall Street.
On Tuesday, the stock market saw profits due to positive inflation data, which suggested that consumer prices could continue on a similar path. The producer’s price index (PPI), which measures changes in wholesale prices, increased by 2.2% compared to last year, almost coinciding with the inflation objective of 2% of the Federal Reserve.
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These inflation reports indicate that the Federal Reserve could be inclined to reduce interest rates soon. Even those members of the Fed who generally prefer higher rates insinuate that they could support a rate cut if more favorable data are observed. If inflation continues to be facilitated and the labor market slows down, the Fed could reduce rates at its September meeting.
Merchants generally predict a rate cut next month, although there is some debate about their size. More than half are betting on a reduction of 50 basic points, while the rest awaits a smaller 25 points cut.
This news has caused optimism on Wall Street while investors closely monitor the next steps of the Federal Reserve in response to the latest economic indicators.
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(tagstotranslate) Us stock futures rise