On Wall Street yesterday, stock indices rose and recovered losses from the previous day, but trading was cautious as investors await new inflation data and the upcoming meeting of Fed leaders.
The Dow Jones strengthened by 0.50 percent to 33,833 points, while the S&P 500 rose by 0.62 percent to 4,293 points, and the Nasdaq index increased by 1.02 percent to 13,238 points.
The reason for yesterday’s growth is primarily based on the rise in stock prices of several tech giants, such as Amazon, but news that could more clearly direct the market is still awaited.
– We see that there is no willingness for greater engagement in the market; investors are paralyzed – says David Bianco, an analyst at DWS Group.
Awaiting inflation information
Investors do not want to take risks until they see new data on inflation trends in the USA, which could influence the decisions of the leaders of the US central bank at next week’s meeting. The inflation report will be released on June 13, and analysts in a Reuters poll estimate that consumer prices in May slightly fell on a monthly basis, while the core inflation rate, which excludes food and energy prices, is likely to remain elevated.
Investors hope this could lead the Fed to pause in the process of raising interest rates. The money market currently estimates that there is about a 75 percent chance that the leaders of the US central bank will leave interest rates unchanged at next week’s meeting.
However, as inflation is not easing quickly enough, most analysts believe that the Fed will raise rates again in July after a pause in June.
Continuation of slight growth
Asian stock exchanges are following the rise on Wall Street, and this morning stock prices have increased. The MSCI index for the Asia-Pacific region was up 0.6 percent around 7:00 AM. Meanwhile, the Japanese Nikkei index jumped 1.8 percent, recovering after two days of decline, reaching a new high level in over 30 years. Stock prices in Shanghai, Australia, Hong Kong, and South Korea rose between 0.1 and 0.9 percent.
