Stock markets in the US mostly experience increments as they brace for the release of inflation data.
The financial landscape is gearing up for a significant week as key economic indicators and the Federal Reserve's interest rate decision approach. The decision date for the Fed's interest rate is set for September 17.
On Monday, Wall Street stocks mostly rose, with the S&P 500 adding 0.2 percent, the Nasdaq Composite Index gaining 0.7 percent, and the Dow Jones Industrial Average recording a slight dip of 0.2 percent. The current S&P 500 stands at 6,497.22, the Nasdaq Composite Index at 21,848.23, and the Dow Jones Industrial Average at 45,332.24.
The rise in stocks is likely due to markets looking ahead to inflation data, which is expected to heavily influence the Federal Reserve's monetary policy. According to Adam Sarhan of 50 Park Investments, Wall Street is still in a "bull market".
Weak labor market data on Friday boosted expectations for rate cuts, and reports on producer prices and consumer prices will be among the last major data points before the Fed's next interest rate decision on September 17. Sarhan states that any data that provides clues about the Fed's next move will significantly impact the market.
Moreover, Sarhan suggests that the upcoming inflation data will be influential. The economist who will make the decision about the Federal Reserve interest rates on September 17, influenced by current inflation data, is Federal Reserve Chairman Jerome Powell.
Investors will be closely watching for inflation data this week, as it could provide valuable insights into the Fed's next steps. Sarhan emphasises that the upcoming data will be crucial in determining the market's direction in the coming weeks.
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