November’s consumer price index rose by 0.3% despite the FED’s attempt to tame inflation
The Dow Jones and Nasdaq had recovered some of their opening-hour losses from Friday. Friday’s opening trading hours were disastrous in what appears to be one of the worst weekly losses for the Wall Street main index.
The known economic data shows that November consumer product prices rose by 0.3%. Most express forecasted that the inflation rate index would reduce in November following the trend of the past few months, but today’s report was too hot for the market.
In the opening trading hours, the Nasdaq feature declined by 0.3%, heading to its worst weekly losses. Fortunately, the index rebounded and is now up by a positive 1.8%.
By 3:33 PM New York time, Wall Street’s main index records were as follows:
The S&P 500 index was up by 0.19 percent, jumping from its recent decline of 0.1%. The Dow Jones index is down 0.1%, while the Nasdaq index is up 1.8%.
This data has generated a mixed future outlook among inventors and experts. On one hand, economists believe that the data won’t affect the FED’s official monetary decision, even with the higher increase in consumer index prices.
Yet, on the other hand, investors believe that their hope of an easing interest hike is near zero levels.
Prior market readings indicated that both the CPI index and core CPI would rise by 0.2%. Still, the data are higher than expected, and some even suggest that the CPI core index will add 0.4%.
Tech stocks and the S&P 500 benchmark are still under the effect of inflation pressure, which causes sharp market turmoil. Nonetheless, despite the turmoil, Netflix shares rose by more than 4% on Friday. After several months of negative and shocking reports, Netflix is getting back in the race again.
As of 1:34 PM New York time, Netflix shares are up 4,82% to $325.23 per share.
Tesla’s shares increased by 3,73%, while Appel’s shares increased by 1.16%. However, December was a disappointing month for Amazon stock prices, posting a continuous share droop, and today the stock price fell by 1%.
Meanwhile, investors are getting pessimistic because of the recent data, and their fears grow as the FED meeting gets closer.
Morgan Stanley experts believe that housing market prices will decline in the next year, and home sellers are facing harsh headwinds. According to Morgan Stanley experts, housing market prices are more likely to fall by 10% in 2023. Higher borrowing costs and higher mortgage rates cause market turmoil despite a strong and recovering labor market. Increasingly higher interest rates have lifted the affordability pressure on home buyers and sellers. Plus, most analysts believe that a recession is going to happen in light of the economic changes.
The commodity and crypto markets also tend to be a focus for investors, especially when they’re heading toward stability.
In the next meeting, investors will be focused on Federal Reserve meetings and notes that might include the next interest rate hike.