“Next week, investors will focus on whether inflation trends can help support a record rally in stocks that got a boost after Donald Trump’s victory in the US presidential race.”, — write: www.epravda.com.ua
Next week, investors will focus on whether inflation trends can help support a record rally in stocks that got a boost after Donald Trump’s victory in the US presidential race.
About this informs Reuters.
Index S & The P 500 jumped to an all-time high and hit the 6,000 level for the first time on Friday, as expectations of tax cuts and lighter regulation under Trump helped boost appetite for stocks.
A reassuring economic outlook from the Federal Reserve, which cut interest rates by 25 basis points on Thursday, also helped boost sentiment. However, the central bank’s ability to keep cutting rates will be tested by whether new data suggest inflation continues to moderate.
The November 13 consumer price index report should “confirm that inflation continues to move in the right direction,” said B Riley Wealth chief market strategist Art Hogan.
Investors believe Trump’s proposals, including higher tariffs, could push consumer prices higher. Meanwhile, US data came in stronger than expected, with a recent report showing the economy expanded 2.8% in the third quarter.
The consumer price index is expected to rise by 2.6% year-on-year in October, according to forecasts of economists polled by Reuters. That would be a slight increase from September’s 2.4%, the smallest gain since 2021, but well below the four-decade highs reached in 2022, which prompted the Fed to raise interest rates.