US stocks closed on a high this Friday (10). The Dow Jones rose 0.60%, to 35,970 points, the S&P 500 grew 0.96%, to 4,712 points, and the Nasdaq traded up 0.73%, to 15,630 points.
The market was digesting US inflation data, which could guide the Fed’s (Federal Reserve, US Central Bank) timetable for reducing stimulus measures.
Consumer prices in the United States rose again in November as the cost of goods and services rose sharply amid supply constraints, leading to the biggest annual gain since 1982, which could encourage the US central bank to reduce quickly your bond purchases.
The consumer price index rose 0.8% last month, after rising 0.9% in October, the Labor Department said on Friday. In the 12 months to November, the index increased 6.8%, the biggest annual increase since June 1982, after rising 6.2% in October, on the same basis of comparison.
Economists consulted by Reuters predicted a 0.7% increase for the index.
Excluding the volatile components of food and energy, the index rose 0.5% last month, after increasing 0.6% in October. The so-called core inflation jumped 4.9% year-on-year, after rising 4.6% in October.
“With the CPI data, the focus is now on the Fed meeting,” says Joe Quinlan, chief market strategist at Bank of America’s CIO office. “The pressure is mounting on the Fed for a faster reduction in stimulus.”
Fed chairman Jerome Powell has already said the central bank is expected to discuss in December whether it will end its $120 billion monthly bond purchases a few months ahead of schedule. The meeting takes place next week. An interest rate hike in that country is expected for the third quarter of next year, according to a Reuters survey of economists.
“Investors are waiting to see if authorities signal a quicker end to the stimulus than currently expected,” the paper noted.
Job
Information about the North American job market and about the rise in prices have been evaluated by investors due to their importance in the Federal Reserve’s decision to accelerate the withdrawal of stimulus.
The number of Americans filing new jobless claims fell to their lowest level in more than 52 years last week as labor market conditions continue to tighten amid an acute shortage of workers .
Initial jobless claims fell by 43,000 to 184,000 in seasonally adjusted data for the week ending Dec. 4, the Labor Department said on Thursday. The dip to the lowest level since September 1969 was, however, likely exaggerated by the difficulties of adjusting the data to seasonal fluctuations.
Economists consulted by Reuters were forecasting 215,000 orders for the last week. Applications dropped from a record 6,149 million recorded in early April 2020.
Reference: CNN Brasil
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