S&P 500: Rally continues ahead of more inflation data, dollar under pressure

• US stock futures continue to rise.
• The dollar cuts rebound and approaches Wednesday’s low.
• Ahead: data on wholesale inflation and requests for unemployment benefits in the US.

Following Wednesday’s rally following the US CPI data, stocks on Wall Street point to a positive open on Thursday. More inflation data will be released. The dollar remains weak after the crash.

Follow the good tone in the markets

Markets continue to digest what was left by the US retail inflation data on Wednesday, which was lower than expected and generated a strong rally in equity markets, which continues on Thursday, the day when new figures will come out of inflation (the Producer Price Index). The annual PPI is expected to go from 11.3% in June to 10.4% in July. In addition, the weekly report of unemployment benefit applicationswhich may be more relevant in the current context of expectations about US monetary policy.

The Wednesday the S&P rose 2.13% and on Thursday futures advanced 0.30%. The Nasdaq gained 2.89% yesterday, rebounding more than 20% since mid-July. In Europe there are mixed results: the FTSE 100 falls 0.32%, the DAX 0.08% and the CAC 0.25%, while in the green is the FTSE MIB rising 0.30% and the IBEX 35 with a gain of 0.55%.

in the premarket, Disney rises 8.90% after reporting record profits. Six Flags, Poshmark, Illumina, Rivian and Warby will present results on Thursday.

Dollar under pressure, cryptos shine

The dollar it is falling again although still above Wednesday’s low. The greenback fell sharply after the inflation data and continues with a bearish tone. EUR/USD is approaching 1.0350, while USD/JPY is firming at 132.50, 200 pips below its level 24 hours ago. The euro is among the best performers.

Emerging market currencies validate gains. USD/MXN is trading below 20.00, at its lowest in more than a month. Thursday the Bank of Mexico will announce its monetary policy decision.

The treasury bond yields they had a significant drop after the CPI but then recovered ground. The curve is still inverted. The 2-year rate yields 3.18%, the 10-year rate 2.77% and the 30-year rate 3.04%.

The inflation figures generated expectations that the Federal Reserve it will soften the pace of monetary adjustment, although a rise of at least 50 basis points is still expected for the next meeting.

Metals are trying to regain strength after Wednesday’s sharp reversal. The Prayed was rejected over $1800 and the silver after touching $20.80, it is in the $20.50 zone. The Petroleum rises again, with an advance of more than 1%, driven by the demand prospects for this year provided by the International Energy Agency.

The cryptocurrencies they were greatly favored by what the US inflation figure generated and accelerated the rise. The Bitcoin hit almost two-month highs above $24,500, while the Ethereum reached $1,900; in the last 24 hours they rose 7.1% and 12.5% ​​respectively.

Technical levels