Wall Street Continued its Fourth Consecutive Positive Sequence

Wall Street Continued its Fourth Consecutive Positive Sequence

Wall Street Continued its Fourth Consecutive Positive Sequence

Wall Street continued its positive sequence on Monday, resulting in a sharp high close while investors awaited crucial inflation data which could provide clues about the duration and gravity of the Federal Reserve policy.

Technology and Energy stocks helped three main US stock indexes touch the two-week peak and confirmed their fourth consecutive profit session, where growth stocks are slightly preferred.

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The Consumer Price Index of the Labor Department (CPI), which is expected before the opening bell on Tuesday, is the main event this week and will be examined for signs of the number and measure of future interest rates from the Fed.

“CPI should see a little decrease,” Robert Pavlik, portfolio director at Dakota Wealth said in Fairfield, Connecticut. “The market hopes that the news translates into smaller rate increases after the September FOMC meeting.”

“Therefore, you see the type of risk mentality today,” Pavlik added.

On Thursday, Chairman of Fed Jerome Powell stressed that the central bank remains “very committed” to handling high inflation and that it will “remain until the work is finished.”

The economist surveyed hopes that the monthly CPI has to shrink 0.1% in August from July, rising to 8.1% of years-year-year, mainly due to the recent ease of commodity prices.

The current financial market has been valued in the probability of 92% that the Federal Open Market Committee (FOMC) will implement a 75-basis point interest rate increase in succession at the end of next week’s policy meeting, according to the Fed watch CME tool.

“The market has now been completely priced for 75 basis points for September,” Pavlik said. “The market hopes that the next is 50 basis points and we will see a slight decline in interest rates after that, and Wall Street can live with it.”

Wall Street Continued its Fourth Consecutive Positive Sequence