US stocks hit new highs on expectations of Fed rate cut

The US stock market set new records in the trading session on September 11, after the release of economic data showing mixed signals on inflation and employment, reinforcing expectations of an upcoming interest rate cut by the US Federal Reserve (Fed).

Trader at the New York Stock Exchange, USA.

At the end of the trading session, the Dow Jones index surpassed the psychological threshold of 46,000 points for the first time in history, with an increase of 617.08 points (equivalent to 1.36%). Meanwhile, the S&P 500 index also increased by 55.43 points (equivalent to 1.85%) to 6,587.47 points, and the Nasdaq recorded its fourth consecutive record increase, surpassing the 22,000 point mark for the first time.

The main driver was the US Labor Department's August inflation report, which showed the Consumer Price Index (CPI) rose 0.4% - the highest since January, beating analysts' forecasts for a 0.3% increase. Compared to the same period last year, the CPI rose 2.9%, up from 2.7% in July.

However, the market appeared less concerned about inflationary pressures as employment data showed clear signs of weakness. The number of applications for unemployment benefits rose to 263,000 in the week ending September 6, the highest level in nearly four years.

Given these developments, investors are betting on a 90% chance that the Fed will cut interest rates by 0.25 percentage points at its meeting next week. Most analysts predict a total of three rate cuts by the end of the year.

PV (synthesis)

Source: https://baohaiphong.vn/chung-khoan-my-lap-dinh-moi-voi-ky-vong-fed-giam-lai-suat-520580.html