US stocks close without a single signal, with inflation and reflection on the Fed

US stocks close without a single signal, with inflation and reflection on the Fed

New York stock exchanges closed without a single signal this Thursday (11), as traders assess the impacts of easing inflation in the United States on the Federal Reserve’s (Fed, the US central bank) stance.

The producer price index (PPI) showed deflation in July, in the wake of the deceleration of the consumer indicator (CPI). Advance in Walt Disney’s share was highlighted, after a positive balance in the most recent quarter.

The Dow Jones index rose 0.08% to 33,336.67 points, while the S&P 500 was down 0.07% to 4,207.27 points and the Nasdaq dropped 0.58% to 12,779.91 points.

The PPI dropped 0.5% last month, according to official data. Added to the weaker-than-expected CPI reading, the data reinforces the notion that energy prices have eased in the past month and offered welcome relief from core costs, Stifel says.

Despite market expectations that the Fed will adopt a less aggressive stance on basic rates, the company notes that the US central bank’s work against inflation is still not complete, with price increases in some categories.

Oanda analyst Edward Moya reckons Wall Street is starting to doubt how long it will take for the Fed to change policy. For him, inflation in the country has already peaked, but it is still “too early” to expect that the next readings will maintain such a rhythm of decline.

Technology-intensive stocks closed in the red, such as Tesla (-2.62%), Amazon (-1.44%) and Moderna (-1.41%). Supporting the Dow Jones, however, was the role of Walt Disney (+4.68%), after profit of $1.41 billion in the fiscal third quarter and 14 million new subscribers in the period, followed by Chevron (+2 .44%), amid the advance of oil.

Source: CNN Brasil