Wall Street Strengthens, US PPI Relieves Interest Rate Pressure
Wall Street strengthened on Wednesday (July 15th), led by gains in major technology stocks. Market sentiment improved after the latest data again showed that inflationary pressures in the United States are beginning to ease.
The S&P 500 index rose 0.4%, while the Nasdaq Composite gained 0.6%. The Dow Jones Industrial Average also edged up 28 points, or 0.1%, indicating that the market is still moving positively, albeit with uneven gains.
Major technology stocks were the main drivers of the market. Tesla rose 2%, while Amazon, Apple, Microsoft, and Alphabet each rose more than 1%. SpaceX shares also rose nearly 2%.
Investor optimism grew after New York Fed President John Williams said there was sufficient reason to believe inflation had peaked and could potentially decline in the coming quarters.
US Producer Price Index (PPI) data also provided additional support. The PPI fell 0.3% in June, compared with economists' previous expectations for a flat reading. This data follows Tuesday's lower-than-expected CPI report, reinforcing expectations that the Fed won't need to raise interest rates too aggressively this year.
As a result, the market's probability of a Fed rate hike in July dropped to 17% from 42% the day before. However, the market still rates a September rate hike at around 63%. This means stocks are benefiting from lower inflation, but the Fed's direction remains a key factor to monitor. (arl)
Source: Newsmaker.id
