US stocks rose as Wall Street digested cooler-than-expected Producer Price Index (PPI) data from the Bureau of Labor Statistics (BLS), which came in below forecasts. Investors now expect the Federal Reserve to cut interest rates by 50 basis points by the end of its September meeting.
The Bank of America Global Fund Manager Survey showed expectations for lower interest rates. Morgan Stanley's chief global economist forecasts the Federal Reserve cutting rates by 75 basis points this year.
Chipotle stock fell, while Nvidia stock gained over 5%. PPI signaled cooling inflation; Home Depot cut outlook; Starbucks CEO replaced by Chipotle chief; markets recovering from recent sell-off and year-to-date gains.
US NFIB small business survey, Atlanta Fed's Raphael Bostic speech to provide further market direction. Canadian stocks up on U.S. inflation data; WSP $1.78B deal; TSX Venture gains; Home Depot, Starbucks, Chipotle moves; PPI, CPI data; Treasury yields, oil, gold prices; Dow, S&P 500, Nasdaq higher.
Bitcoin price stagnant despite Japanese stocks, US equities rallying. July CPI expected to show headline inflation at 3.0% and core at 3.2% annually.
Pound rose on UK jobs data, defying bets on Bank of England rate cuts. US NFIB small business survey, Atlanta Fed's Raphael Bostic speech to provide further market direction.
US stocks rose as Wall Street digested cooler-than-expected Producer Price Index (PPI) data from the Bureau of Labor Statistics (BLS), which came in below forecasts. Investors now expect the Federal Reserve to cut interest rates by 50 basis points by the end of its September meeting.
Survey: investors bet on Fed cuts for market revival. 93% of fund managers expect lower rates in 12 months, 60% foresee 4+ cuts.
Market bounces back from recent meltdown; inflation report to influence future gains. Investors reduce stock exposure, increase cash levels amid economic concerns.
Majority anticipate Fed's actions for soft economic landing. The Street Daily Newsletter: Economists are debating the risk of recession after the July jobs report.
The Sahm rule has been triggered, but Sahm believes immigration has skewed the data. Analysts cite low insured jobless rates, high job openings-to-unemployed ratios, the S&P 500's recent record high, and semiconductor and tech stocks remaining above their 200-day moving averages as signs the economy is not in immediate danger.
They also note that the 30-year Treasury yield has not reached 4%, and the S&P 500 remains well above its 2021 high, further indicating a soft landing rather than a hard recession.
