- Wall Street has trimmed gains towards the close awaiting CPI and the Fed.
- Markets see a 72% chance that the US central bank will hold interest rates.
US stocks have pared gains towards the close on Friday, with the S&P 500 unable to hang on. At the time of writing, the index was up 0.27%, after rallying from a low of 4,279.10 to a high of 4,322.20, and was back as low as 4,303 today.
The benchmark S&P 500 index closed 20% above its October 12 closing low on Thursday and remains bullish on the session, in what has been heralded as the start of a new bull market by the definition of some. market participants.
Stocks have benefited from the sentiment surrounding the Federal Reserve, with a 72% probability that the US central bank will keep interest rates in the current range of 5%-5.25% at its 13-13 policy meeting. June 14, according to CMEGroup’s Fedwatch tool. Important data on the Consumer Price Index will be released on Tuesday, which could help shape expectations for further Fed moves.
Given Powell’s bias towards a pause in June, we expect the FOMC to keep the target range for the federal funds rate unchanged this month,” the Rabobank analysts explained.
However, stronger-than-expected economic data has already convinced about half of the FOMC that further rate hikes are warranted. Meanwhile, the expected tightening of credit terms has yet to materialize and has not replaced rate hikes. Therefore, we expect the FOMC to leave the door open for a rate hike in July to convince the hawks to skip June,” the analysts say. “For now, we expect a 25-point rate hike before the FOMC takes a break for the remainder of the year.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
