US stocks rallied today. Inflation data for November did little to change expectations for the timing of interest rate cuts by the US central bank (Fed). Investors will now be closely watching the Fed’s final monetary committee meeting of the year, which ends on Wednesday.
Indexes are getting stronger
The Dow Jones index increased by 173.01 points, or 0.48 percent, to 36,577.94 points. The broader Standard & Poor’s 500 index rose 21.26 points, or 0.46 percent, to 4,643.70. The technology market index Nasdaq rose by 100.91 points, or 0.7 percent, to 14,533.4 points.
US consumer prices rose 0.1 percent in November from the previous month, while they were unchanged in October. In a year-on-year comparison, however, inflation slowed to 3.1 percent from October’s 3.2 percent. Analysts polled by Reuters had expected month-on-month inflation to remain unchanged and year-on-year to 3.1 percent. Excluding volatile food and energy prices, prices rose 0.3 percent after rising 0.2 percent in the previous month and up four percent year-on-year.
Fed
Traders were not long ago counting on a US interest rate cut in March. However, last week, after the report from the labor market, they moved this date to May. The Fed began its rate hike cycle in March 2022.
Investors will now focus on the Fed’s statement on Wednesday. Interest rates are not expected to change. However, the bank is to publish updated forecasts of economic development and interest rates. The monetary committees of the central banks of the Eurozone and Britain are also meeting this week.
source: ČTK
