{"id":46790,"date":"2023-08-10T10:49:39","date_gmt":"2023-08-10T14:49:39","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/dow-rallies-400-points-as-july-inflation-report-bolsters-expectations-fed-is-done-hiking-rates\/"},"modified":"2023-08-10T10:49:41","modified_gmt":"2023-08-10T14:49:41","slug":"dow-rallies-400-points-as-july-inflation-report-bolsters-expectations-fed-is-done-hiking-rates","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=46790","title":{"rendered":"Dow rallies 400 points as July inflation report bolsters expectations Fed is done hiking rates"},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0002385111\" role=\"document\">\n<p>U.S. stocks were sharply higher on Thursday, with the Dow up 400 points, after the July report on consumer prices showed inflation remained relatively subdued last month, helping to cement expectations that the Federal Reserve has finished raising interest rates. <\/p>\n<h2>What\u2019s happening<\/h2>\n<ul class=\"articleList\">\n<li>\n      The Dow Jones Industrial Average<br \/>\n        DJIA<br \/>\n       gained 419 points, or 1.2%, to 35,556.<\/p>\n<\/li>\n<li>\n      The S&amp;P 500<br \/>\n        SPX<br \/>\n       gained 57 points, or 1.3%, to 4,525. <\/p>\n<\/li>\n<li>\n      The Nasdaq Composite<br \/>\n        COMP<br \/>\n       rose by 220 points, or 1.6%, to 13,943. <\/p>\n<\/li>\n<\/ul>\n<p>The S&amp;P 500 has declined six of the last seven sessions as stocks have seen a rocky start to August, but all three major indexes have erased their losses for the week so far as of 10 a.m. Eastern Time, boosting the chances of stocks avoiding a second-straight weekly decline, what would be the first for the S&amp;P 500 since May, according to FactSet data. <\/p>\n<div class=\"paywall\">\n<h2>What\u2019s driving markets<\/h2>\n<p>U.S. consumer prices rose by 0.2% in July on both a headline and core basis, excluding food and energy prices, both of which were in line with economists\u2019 expectations, according to the latest consumer-price index report from the Department of Labor. <\/p>\n<p>However, on a year-over-year basis, headline prices rose by 3.2%, which was lower than 3.3% forecast by economists polled by The Wall Street Journal, but higher than the 3% reading from the prior month. That marked the first re-acceleration in 13 months. Meanwhile, an increase in core inflation, excluding food and energy prices,  over the past year slowed a tick to 4.7% from 4.8%, the lowest rate in almost two years.<\/p>\n<p>Analysts scrutinizing the details of the report generally determined that it would boost the Fed\u2019s case for leaving interest rates on hold in September. <\/p>\n<p>Economists noted declines in both used and new car prices in July, while dismissing a 7.7% year-over-year increase in shelter prices, reasoning that slower growth in rents in July would help ameliorate price pressures in an area that is being closely watched by the Fed. <\/p>\n<p>Based on how individual categories are weighted in the overall CPI data, the cost of rent and housing accounted for more than 90% of the increase in consumer prices last month. <\/p>\n<p>\u201cOverall, the underlying details of the July CPI inflation data are consistent with ongoing progress on disinflation,\u201d said Gurpreet Gill, global fixed income macro strategist at Goldman Sachs Asset Management, in emailed commentary. <\/p>\n<p>\u201cAlthough core services inflation trended higher on the month, other component-level trend are evolving in line with our expectations. In particular, rents and used car prices softened, alongside clothing and airfares.\u201d<\/p>\n<p>Traders now see less than 14% chance of a September rate rise by the Fed, which was little-changed after the CPI data but down from more than 20% a week ago, according to the CME\u2019s FedWatch tool. <\/p>\n<p>One analysts said the data could help to reverse some of stocks\u2019 August slump.<\/p>\n<p>\u201cToday\u2019s inflation report is good news for a market that\u2019s seen profit taking and worries about summer volatility,\u201d said David Russell, vice president of market intelligence at TradeStation.<\/p>\n<p>In other economic news, the latest reading on unemployment claims showed the number of Americans applying for unemployment benefits increased last week by 21,000 to 248,000. <\/p>\n<p>Treasury yields, which have been in focus for stocks lately, were little-changed on the day in recent trade as an initial kneejerk decline after the release of the CPI data faded. <\/p>\n<p>The yield on the 10-year Treasury note<br \/>\n        BX:TMUBMUSD10Y<br \/>\n       was marginally lower at 4.002% after falling as low as 3.95% shortly after the inflation data were released at 8:30 a.m. Eastern Time. <\/p>\n<p>The U.S. dollar also weakened, with the ICE U.S. Dollar Index<br \/>\n        DXY<br \/>\n       off 0.2% at 102.28. <\/p>\n<h2>Companies in focus<\/h2>\n<ul class=\"articleList\">\n<li>\n       <strong>Walt Disney Co. <\/strong>shares<br \/>\n        DIS,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203410047\/composite\" class=\"positive\">+2.37%<\/bg-quote><br \/>\n       rose after the media giant reported a mixed third-quarter and said it will raise prices on almost all of its streaming packages in an aggressive push to boost profit.   <\/p>\n<\/li>\n<li>\n       <strong>Capri Holdings<\/strong> shares<br \/>\n        CPRI,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/206301876\/composite\" class=\"positive\">+56.20%<\/bg-quote><br \/>\n       jumped after Tapestry<br \/>\n        TPR,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207417762\/composite\" class=\"negative\">-13.09%<\/bg-quote><span>,<\/span><br \/>\n       the owner of Coach, announced a deal to buy the company, the parent company of Michael Kors, Jimmy Choo and Versace.\u00a0 <\/p>\n<\/li>\n<li>\n       <strong>Plug Power Inc.<\/strong> stock<br \/>\n        PLUG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205453512\/composite\" class=\"negative\">-12.84%<\/bg-quote><br \/>\n       dropped after the alternative-energy company saw losses for the second quarter increase more than Wall Street expected.  <\/p>\n<\/li>\n<li>\n      <strong>Alibaba Group Holding Ltd.<\/strong><br \/>\n        BABA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/201948298\/composite\" class=\"positive\">+5.35%<\/bg-quote><br \/>\n       rose after the Chinese e-commerce giant topped expectations with its latest revenue and earnings.<\/p>\n<\/li>\n<li>\n      <strong>Roblox Corp.<\/strong><br \/>\n        RBLX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/223883423\/composite\" class=\"positive\">+2.14%<\/bg-quote><br \/>\n       shares rose modestly, paring some of a post-earnings decline.<\/p>\n<\/li>\n<\/ul><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/story\/u-s-stock-futures-advance-ahead-of-crucial-inflation-report-8eb9cf45?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. stocks were sharply higher on Thursday, with the Dow up 400 points, after the July report on consumer prices showed inflation remained relatively subdued last month, helping to cement expectations that the Federal Reserve has finished raising interest rates. What\u2019s happening The Dow Jones Industrial Average DJIA gained 419 points, or 1.2%, to 35,556. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":46791,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-46790","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Dow rallies 400 points as July inflation report bolsters expectations Fed is done hiking rates | iFintechWorld<\/title>\n<meta name=\"description\" content=\"U.S. stocks were sharply higher on Thursday, with the Dow up 400 points, after the July report on consumer prices showed inflation remained relatively\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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