US Stocks Rise for Fourth Straight Day Amidst Inflation Fears and Anticipated CPI Report
Summary:
The US stock market saw a fourth consecutive day of rise as investors eagerly await the forthcoming Consumer Price Index report. Despite the upward trend, stock prices were lower than those in July due to lingering fears of potential interest rate hikes. The Bureau of Labor Statistics is shortly expected to release September's inflation statistics. Meanwhile, discrepancies in treasury yields evoke fears of an impending recession among some market players. Despite the Federal Reserve's predicted interest rate hikes, gold prices continue to surge, while oil prices dip today in response to geopolitical tensions. Finally, in the foreign exchange market, the US Dollar index has slightly fallen as Euro advances and Yen declines.
The US stock market observed a continual rise for the fourth consecutive day today, as market participants await the Consumer Price Index report set to be published on October 12. The notable Dow Jones Industrial Average advanced by 65.57 points (a hike of 0.19%), registering at 33,804.87. Similarly, the S&P 500 established gains of 18.71 points (an ascent of 0.43%), concluding at 4,376.95. The Nasdaq Composite Index elevated by 96.83 points (0.71%) and wrapped up the day at 13,659.68.
Though the market experienced a lift today, the stock prices remain beneath those registered in July. The looming threat of interest rate hikes has been a significant theme defining market direction since that time. Doubters speculate that inflation will escalate quicker than previously projected, compelling the Federal Reserve to execute further rate increases. However, optimists maintain a hopeful stance that inflation will remain in check, negating the need for drastic hikes in interest rates. The Bureau of Labor Statistics is anticipated to publicize the September inflation statistics tomorrow, with economists surveyed by Dow Jones predicting a 0.3% inflation rate for the month.
Details from the Federal Open Market Committee meeting held in September were disclosed today. The majority of the members forecasted one additional rate hike as necessary during this economic cycle, a point not agreed upon by all members. However, unanimous agreement was seen on keeping the rates elevated until credible signs show inflation getting back on track at 2% annually.
Contrarily, the 10-year and two-year US Treasury yields progressed divergently throughout the day. The 10-year yield descended by 0.1 points, marking 4.564%, while the two-year yield climbed by 0.002 points, culminating at 4.986%. The ongoing inversion of the yield curve sparks fears of a forthcoming recession for some market players.
In spite of the expected rise in interest rates by the Fed, gold dealers continue to be hopeful. Gold saw an increase of $13.81, standing at $1,873.56 per Troy Ounce. On the flip side, oil values depreciated, with West Texas Intermediate witnessing a $2.62 drop per barrel, coming down to $83.33 and Brent crude experiencing a decline of $2.03 per barrel, winding up at $85.62. Earlier, on Monday, oil experienced a surge of over 4%, fueled by anticipations of further Iran sanctions in the wake of the Israel-Hamas dispute. However, this trend reversed, starting Tuesday, following Iran's denial of engagement in the conflict, with the decline persisting today.
In foreign exchange market trends, the US Dollar Index dipped by 0.1%, reaching 105.73. The euro appreciated by 0.1275%, hitting 1.0622. Conversely, the yen experienced a fall by 0.2777%, which led to the requirement of more yen to procure a dollar, increasing to 149.1180. Traders foresee a potential intervention by the Bank of Japan if this figure escalates beyond 150.
This news piece was developed using source data from CNBC, Marketwatch, Kitco, Business Insider and MSN Money. At Vintage Markets, our commitment lies in comprehensive exploration and reporting of age-old financial news, capturing the evolution of global markets and economies right from the Stone Age to the Stoned Age.
Published At
10/11/2023 10:30:23 PM
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