European Markets Hit Lowest Levels in Months amid Growing Inflation
The day’s trading was marked by mediocrity, with the European markets generally treading water before closing in the red.
The day’s trading was marked by mediocrity, with the European markets generally treading water before closing in the red.
Concerns about higher interest rates can lead to reduced borrowing, higher financing costs, and a potential slowdown in economic activity.
The Nasdaq saw a lower close as tech stocks fell after Oracle released figures that disappointed Wall Street.
As investors brace themselves for another week of market volatility and unsteady stock futures, all eyes are on the crucial economic data releases that could have a profound impact on the financial landscape.
The S&P 500 gained about 3.17 percent in the past five days to trade at around 4,514.87 as of Wednesday’s close.
A tighter labor market and lower jobs opening shows that inflation pressure continue. Companies are adopting a cautious before the Fed’s September meeting.
At the core of the Nasdaq Composite’s resurgence was the undeniable role of bonds and economic data.
The decelerating inflation reduces some of the pressure from the Fed, however, remains high over the central bank’s 2% target. Thus, the Fed is less to announce rate cuts anytime soon.
US equity market remains upbeat and optimistic ahead of the CPI data release for the month of July 2023.
After a strong rally in growth stock and other tech companies, analysts are advising investors for a sectorial rotation to defensive stocks.