Editor
The S&P will reach 5.500.00 BPS for the second time in its history and the second time this month amid colling inflation data.
On Friday morning, the market welcomed good news regarding key inflation data. The PCE report was released very early this morning, which suggests collapsing inflation at a time when investors remain unaware of the Federal Reserve’s next interest rate point. As for the U.S. stock, Wall Street will end this month in a strong position despite the fall in the past two sessions.
This morning, Wall Street main indexes edged higher, with the S&P 500 benchmark topping by 0.35% to 5.500 basis points, hitting a new high for the second time this year and the second time in all-time history. The tech-heavy composite Nasdaq was up by 0.30% to 17.910,80 basis points, while the Dow Jones industrial average was up by 39.233.70 basis points.
Meanwhile, inflation in the U.S. is showing signs of collapsing, which plays a significant role in contributing to the Fed interest rate cuts later this year. Starting with the headline inflation index, calculated for the prairie month May readings remain at 0.3%, which is better than April readings. Annual PCE index: cooled to 2.6% (from 2.7% plus the. Core PCE scored a 0.1% month-on-month improvement and a 2.6% year-on-year incline. Based on those readings, Federal Reserve officials might consider interest rate cuts in 2024. Like the previous market estimation for the first time in two months, marketers see two potential interest rate cuts this year in September and December.
The San Francisco Mray Daly shared his opinion on the data and said, in a recent interview with CNBC, “It’s really challenging to look anywhere and not see monetary policy working. We have growth slowing, spending slowing, the labor market slowing, and inflation coming down,” he added. “We are getting evidence that the policy is tight enough.”
In his interview, Daly insists on the fact that the Fed’s main goal is to bring inflation to 2%, which means longer interest rates and a longer timeline to achieve that.
In other news, the political war and the presidential debates are on the spot, especially when the Biden administration showed poor leadership in dealing with the macroeconomic challenges around the globe. Particularly with the recent military conflict in Eastern Europe and the Middle East. CNN hedges the debate and says Trump outperforms Biden. Biden struggled with a hoarse voice and long pauses while Trump criticized Biden’s economic and foreign policy record.
Oil prices rose on Friday to hit their third consecutive session of gains in time when U.S. senators heard Amazon comments about oil companies in the U.S. Recent OPEC+ oil production cuts have affected U.S. inventories, and as the accusation has extended within the U.S. itself, some senators are starting to believe that some oil companies in the U.S. are engaging in collusive, anti-competitive activities with OPEC+ that would raise crude oil prices.
Here is what the Whitehouse said in a statement.
“Based on recent events involving Pioneer Natural Resources, I am concerned about the possibility that oil and gas companies could be engaging in collusive, anti-competitive activities with OPEC+ that would raise crude oil prices, resulting in higher costs not only for American families but also for the U.S. government when it acquires crude oil for the Strategic Petroleum Reserve.”
