Saturday, June 22, 2024

Wall Street is rallying strongly ahead of the open…Hopefully this will derail the Fed! Powered by Investing.com

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© Reuters

Investing.com – U.S. stock futures rose on Monday as investors digested Federal Reserve Chairman Jerome Powell’s key interest rate comments and looked for fresh economic data that could halt the tightening path.

US market indices before trading

At exactly 15:25 Riyadh time, the contracts added 120 points, or 0.34%, and {{1175153|S&P 500 index futures}} rose 13.25 points, or 0.30%, to 64.25 points, or 0.43% higher. All major indices closed in the green to end the previous trading week.

The long awaited Powell

In a much-anticipated speech at the annual economic conference in Jackson Hole, Wyoming, on Friday, Powell argued in favor of holding steady for now. But he noted that “further tightening” may be needed if the economy does not slow enough to calm inflation.

The data highlight how carefully Powell and other central bank officials are trying to adjust monetary policy tools to limit price gains without collapsing the broader economy.

According to Investing.com, there is an 80% chance the central bank will raise borrowing rates to between 5.25% and 5.50% at its next meeting in September. Meanwhile, the probability of a quarter percentage point rate hike at the November meeting is less than 50%, down from 35% last week.

Very important data this week

The central bank will have an opportunity to gauge the path of inflation when its preferred index of price growth is released on Thursday.

Policymakers will also scrutinize the report for August, due out on Friday. Economists estimate the U.S. added 170,000 jobs this month, up from 187,000 in July, while it is expected to remain unchanged at 3.5%. And, even if the overall labor market is tight, such a reading could indicate that interest rate hikes by the Federal Reserve are hurting employer demand.

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A jump company awaiting settlement

Among individual stocks, 3M (NYSE: ) shares rose in pre-market trading. A Minnesota-based industry group is said to be close to a $5.5 billion settlement to settle hundreds of thousands of claims alleging that earmuffs it sold to the U.S. military were defective.

According to multiple media reports, sources close to the matter say negotiations are ongoing and the final amount is yet to be settled. The potential solution was first reported by Bloomberg.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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