Wall St. jumps ahead of inflation report

All three key indices of Wall St. had stretched out their latest run of winning streak on Wednesday

by Sourav D
Wall St. jumps ahead of inflation report

On Wednesday, all three key indices of Wall St. had stretched out their latest run of winning streak, as stocks soared on afternoon trading with growth-stock heavy Nasdaq climbing as much as 1.3 per cent, while investors appeared to be optimistic ahead of Thursday’s CPI (Consumer Price Index) data following release of a dismal ISM survey data last week.

In the matter of the fact, the ISM’s US flash composite PMI (Purchasing Managers’ Index) for December had rattled the nerves of investors, as the data had suggested that the US economy might already be facing off a recession with services sector having been dipped into a contraction territory for the first time in two and a half years.

On top of that, US factory activity had topped for a second successive months in a row in December, suggesting further weakness in US economy which in effect would eventually prod the US Federal Reserve to sway away from its hawkish monetary policy.

At this standpoint, as futures’ money markets across the US are banking on a 25-bps (basis percentage point) rate-hike on US Fed’s February policy meet, interest-rate sensitive stocks like of growth stocks had ballooned with Nasdaq rising more than 1 per cent for second successive session in a row.

Wall St. gains ahead of inflation data

Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow gained 0.58 per cent to 33,901.09 and Wall St. bellwether S&P 500 soared 0.94 per cent to 3,956.06, while tech-heavy Nasdaq climbed as much as 1.27 per cent to 10,878.82.

Meanwhile, adding that the investors are anticipated a weakening in CPI following what could be viewed as a cataclysmic ISM US flash composite PMI data released on last Friday, chief executive of Longbow Asset Management in Tulsa, Oklahoma, Jake Dollarhide said, “Investors are anticipating that we're closer to a pause than at any other point last year”.

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