NEW YORK (dpa-AFX) – On Wednesday, investors in the New York Stock Exchange reacted with relief to significantly weakened inflationary pressure in the United States. The leading Dow Jones Industrial index
In the US, the pace of price growth slowed down more than expected in July. Inflation slowed to 8.5 percent. In June, inflation in the world’s largest economy was still 9.1%, the highest level in over 40 years.
According to analyst Jochen Stanzl of the CMC Markets broker, the likelihood of the Fed raising key interest rates by 0.75 percentage points in September literally collapsed after the market price data.
High interest rates tend to put stocks in a worse light compared to fixed income investments, and equity investors are adequately satisfied when interest rates go down. At the same time, fears that the Fed may slow down the economy with large interest rate hikes are weakening.
“The market response is encouraging,” wrote Garrett Melson, portfolio strategist at Natixis Investment Managers on Wednesday. “Short-term interest rates are falling, the dollar is weakening, stocks are rising, led by the tech industry.” This is exactly what would be expected if the chances of a soft landing for the economy increased.
At Dow, Walt Disney shares rose by about four percent
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America’s largest crypto exchange, Coinbase
In the US bond market, prices rose after inflation data. The T-Note Future recently gained 0.17% to 119.69 points after even higher price gains were recorded at the start of trading. The yield on 10-year government bonds fell to 2.79 %./ajx/he
— Author: Achim Jungling, dpa-AFX —
ISIN US2605661048 US6311011026 US78378X1072
AXC0366 2022-08-10 / 22: 32
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