S&P, Nasdaq, Dow advance on CPI data, Fed meeting (SP500)

Business on Wall Street in Manhattan

Pgiam/iStock via Getty Images

US stocks rose on Monday to kick off a busy week that will see rate decisions from major central banks in the US, Europe and England and economic data on domestic inflation.

The Nasdaq Composite (COMP.IND) underperformed the other two major indices, weighed down by losses in megacap tech stocks and Tesla (TSLA). At midday, the tech-heavy index was 0.29% higher at 11,036.43 points.

The benchmark S&P 500 index (SP500) added 0.53% at 3,955.12 points, while the blue chip Dow Jones (DJI) advanced 0.82% at 33,751.12 points.

Of the 11 S&P sectors, eight were trading in the green, led by energy and utilities. Consumer discretionary fell the most among the losers.

Sentiment was also helped by a New York Fed survey that showed US consumers had lowered their inflation expectations for all deadlines.

“The FOMC meeting on Wednesday, December 14 will be a significant event as it will end the rapid process of raising rates to catch up with inflation and move into the next phase, focusing on level and duration,” the official said. Seeking Alpha contributor. Mott Capital Management said on Sunday.

“Listening to Fed officials since the November FOMC meeting, it is clear that the Fed’s forecast rate hike path will be higher than it had at the September FOMC meeting. At this At that time, the Fed saw the maximum terminal rate at 4.6%. Rates are likely going much higher than what the market has expected for 2023,” Mott Capital Management added.

All three major Wall Street indexes posted heavy losses last week as investors remained cautious ahead of the Fed meeting. Sentiment was also hurt by mixed economic data that suggested the central bank may need to stick to a tighter policy for longer.

The economic calendar remains light on Monday, but the focus will be squarely on the November Consumer Price Index data due Tuesday.

“The CPI report will likely confirm the slowdown in core inflation seen last month. “we got some low inflation prints, we don’t see high frequency data and first month leading indicators suggesting a rebound in inflation. The drop in inflation seems to be more persistent this time around” , UBS economist Jonathan Pingle said in a preview. note Friday.

Turning to bond markets, the 10-year Treasury yield (US10Y) increased by 1 basis point to 3.58%, while the 2-year rate (US2Y) rose 4 basis points to 4.37%.

Among the active movers, Aptevo Therapeutics (APVO) was the best winning percentage on the Nasdaq Composite after announce the results of a preliminary trial on its drug candidate against leukaemia. Conversely, Affimed (AFMD) was the highest losing percentage on the Nasdaq on plans to prioritize its main strength as a combination therapy.

Therapeutic Horizon (HZNP) advanced after agree to be bought by Amgen (AMGN) in a nearly $28 billion deal.

News related to mergers and acquisitions also sent shares of Coupa Software (CUT) superior after Thoma Bravo agreed to buy the company for $8 billion.

How much do you think the Fed will raise rates? Vote in our Wall Street Breakfast poll.

Leave a Reply

Your email address will not be published. Required fields are marked *