Continuation of the bullish reaction on Wall Street

The main indicators of the American market are also moving on positive territory today after another better than estimated inflation measurement, today in wholesale prices.

In particular, the industrial index Dow Jones moves with a rise of 250 points or 0.74% at 33,556 unitsthe broadest market index S&P 500 is enhanced by 0.7% at 4,240 unitsas well as the technologically weighted one Nasdaq located at 12,951 units with +0.72%.

After the stock market euphoria brought yesterday by the slowdown in the consumer price index, today’s announcement of the unexpected reduction in producer prices continues to boost the investment mood.

In particular, wholesale prices in the US showed their first drop in more than two years, confirming the de-escalation of inflationary pressures.

THE producer price index retreated against 0.5% in relation to June, presenting its first monthly drop since April 2020 of the pandemic, even when the estimate predicted an increase of the order of 0.2%.

On a year-on-year basis, producer prices increased in July by 9.8% from a year ago, which is their slowest pace since October 2021.

Characteristic of the slowdown presented by the index is that in June it ran at 11.2%, while in May it recorded a record rate of 11.6%.

The market is coming off an extremely strong session in which the S&P 500 hit its highest point since mid-May, while the Nasdaq jumped nearly 2.9% out of bear market territory to post its own highest close since end of April.

“The trend is our friend at this stage,” said Mona Mahajan of Edward Jones, adding that “markets will appreciate as a step in the right direction on inflation, the data yesterday and today.”

Fed officials continue to say the US central bank will continue to raise interest rates, but they are now signaling – as the market expects – a more dovish approach going forward.

It’s worth noting that bets on the Fed’s next September rate hike completely reversed yesterday after measuring inflation, with the 50 basis point one taking the lead at 62% from 38% previously.

Today, the probability has further strengthened, with the market now pricing in 68% that the Fed will add another 0.5% to its interest rates, and just 32% the “favorite” as the frontrunner for a third consecutive giant 0.75 hike. %.

Elsewhere, earnings calls continue with Disney rallying more than 9% today to top the Dow after beating market estimates at every level and notably adding more than 5 million subscribers than estimated the analysts.

Along with it, it drags its main competitor in the streaming sector, Netflix, which moves to +1.4%.

At the same time, the index-heavy technology supercaps continue today at an upward rate, although not at the same level as yesterday.

Indicatively, Facebook parent Meta scores new gains of 2% and Google parent Alphabet is up 1.3%, while Amazon, Apple and Microsoft all have a positive sign but with gains of less than 1%.

Finally, in the rest of the macroeconomic news of the day, there was a slight increase in new applications for unemployment benefits in the US, which were maintained at satisfactory levels for the pace of the economy.

In particular, applications rose by 14,000 in the week ended August 6 to 262,000.

It is noted that the reading remains below the range of 270,000 to 300,000, which constitutes a level that economists consider to signal a significant slowdown in the labor market.