A survey from the University of Michigan on Friday showed that consumers raised their expectations for future inflation. Inflation, though cooling in some areas of the economy, remains stubbornly hot overall.
Wall Street expects another raise of three-quarters of a percentage point at its next meeting in November. The central bank has already raised its benchmark interest rate four times this year, with the last two increases by three-quarters of a percentage point. Fed Chair Jerome Powell has said Americans’ expectations for future inflation plays a big role in setting interest rates, because a runaway there could create a much more dangerous, self-fulfilling spiral. Investors have been looking for any sign that could allow the Fed to eventually ease up on its interest rate increases. “I don’t think we’re likely to see any sense of direction or stability in the near term.” “I don’t think that (the rally) technically or fundamentally means anything because a whole lot hasn’t changed,” said Sylvia Jablonski, chief investment officer at Defiance ETFs. indexes staged their biggest comeback in years on Thursday in a reversal from steep morning losses. Trading has been unsettled all week and was especially volatile on Thursday after a government report showed that inflation remains very hot. The Dow Jones Industrial Average fell 258 points, or 0.9%, to 29,779 and the Nasdaq fell 2.2%. The benchmark index was up as much as 1.2% in early trading. The decline marks another sharp reversal in a very volatile week.
0 kommentar(er)
