Market: Wall Street rebounds ahead of consumer price data

(CercleFinance.com) - Wall Street was directionless for a long time, with red on the sidelines past mid-session.
.. then a few buyers got bolder as T-Bonds benefited from a clear upturn (-6 to -7Pts in yield).

The S&P500 returned to the green, gaining 0.45%, the NASDAQ advanced +0.85%, and the Dow Jones reduced its loss to -0.25%.

The Nasdaq-100 gained 0.9% in the wake of Broadcom +5.3%, Tesla +4.5%, Marvell Techno +3.9%, AMD +3.4%.

Wall Street didn't seem to be expecting any big surprises from the Trump/Harris debate on ABC and on the eve of US inflation figures.

Some strategists point out that there are currently many reasons to stay away from the market, citing the slowdown in US growth, concerns about the Chinese economy and the prospect of the US presidential election in November.

Investors should therefore be wary of committing too much while awaiting the release of US consumer price indexes (CPI), which could shed light on the Fed's intentions.

Mixed figures could complicate the task of the US central bank, which intends to start cutting interest rates from next week.

Investors believe, rightly or wrongly, that the Fed has waited too long to act in view of the deterioration in a number of economic indicators.

According to CME Group's FedWatch barometer, the probability of a 50bp rate cut on Wednesday September 18 is 29%, while the probability of a 25bp rate cut is 71%.

Wednesday's figures are all the more eagerly awaited, which should lead many market participants to keep their ammunition warm.

US bond markets made good progress at the end of the day: the yield on the '10-year' T-Bond erased -5.7Pts to 3.664%, and that on the '2-year' by -75Pts to 3.596%.

Copyright (c) 2024 CercleFinance.com. All rights reserved.