Wall St. climbs ahead of CPI data as Powell remarks avoid rate policy

All three key indices of Wall St. had closed out the session in a solid footing on Tuesday following Fed Chair Jerome Powell’s soothing remarks

by Sourav D
SHARE
Wall St. climbs ahead of CPI data as Powell remarks avoid rate policy

On Tuesday, all three key indices of Wall St. had closed out the session in a solid footing following Fed Chair Jerome Powell’s soothing remarks which seemed to be a relief for the investors, as he abstained from making comments on future Fed rate policy.

On top of that, prospects of further hawkish policy stance from the US Fed had allayed significantly following last week’s ISM data had unveiled the US economy might already be facing off a recession, vindicating forecasts from the US Fed Chair Jerome Powell made later last year.

In the matter of the fact, in the day’s steep upward spiral in all three key indices of the Wall St. was almost entirely galvanized by Fed Chair Powell’s first comment during a public appearance this year, as speaking in a forum sponsored by the Swedish Central Bank, Powell had averted making comments on any kind future moves from the US Fed, eventually adding to a sigh of relief for the market participants.

At this standpoint, futures’ money markets around the world are mostly betting on a 25-bps (Basis Percentage Point) rate hike from the US Central Bank at its February policy meet. However, investors are now bracing for the US CPI (Consumer Price Index) data scheduled to be released on Thursday.

Wall St. ends higher ahead of CPI data

Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow rose by 0.56 per cent to 33,704.1 and S&P 500 surged 0.70 per cent to 3,919.25, while tech-heavy Nasdaq climbed as much as 1.01 per cent to 10,742.63, Meanwhile, adding that the market participants still remained heavily biased on US Fed Chair Powell’s remarks despite a deluge of misinterpretations, which many analysts are branding as a diversion in order to promote dollarization, a senior portfolio strategist at Ingalls & Snyder in New York, Tim Ghrisley said, “Everybody hangs on every word from the Fed. Powell "didn't really say anything" about policy”

Wall St
SHARE