Procedures in Wall Street With mixed results on Monday as investors prepare for a two-day meeting Federal Reserve This week the US central bank is expected to raise interest rates sharply to combat inflation.
Indicator Standard & Poor’s 500 and the industrial average Dow Jones It rose slightly, led by energy and utilities shares and financial shares. Indicator Nasdaq Composite, with significant technological weight, fell.
Major indexes posted solid gains last week, after a mix of corporate earnings reports that mostly came in better than expected. Lower yields in the bond market also helped ease pressure on stocks after expectations of a Fed rate hike drove yields higher for most of this year.
On Wednesday, most economists expect the Fed to announce an increase Three quarters of a percentage point In the short-term interest rate, a second straight strong hike he hasn’t applied since 1994. It would put the Fed’s benchmark interest rate in a range of 2.25% to 2.5%, the highest level since 2018.
The US economy is slowing downbut health employment shows it hasn’t entered yet RecessionOn Sunday, the Treasury Secretary said, Janet YellenOn the NBC. He spoke ahead of this week’s release of a series of economic reports that will shed light on the economy he is currently suffering from hyperinflation While interest rates are rising.
Some early indications are that inflation may cool off from extreme levels of heat. On Monday, the AAA Automobile Club indicated on its website that the average price of gallons of gasoline Regular is $4.36 per gallon. This number represents a decrease of 16 cents Compared to a week ago, which is 55 cents cheaper than in late June, when the average price was $4.91 per gallon. The price of crude oil is down nearly 10% this month alone.
On the sidelines of the Federal Reserve meeting, the most notable report is likely to be ThursdayWhen the Ministry of Commerce publishes first estimate of economic production for the April-June quarter. Some economists predict that it could appear a contraction For the second consecutive quarter. The economy contracted 1.6% in the January-March quarter. Two consecutive negative readings are unofficially considered a stagnation.
Monday’s results will be quiet, but it will rebound later this week when companies with tech heavyweights like manzanaAnd the GoalAnd the Microsoft s Amazonpresent their results. Other big companies that will present their results this week are Coke–Tail s McDonald’swhere investors can see the impact of inflation on these companies that care about consumers.
Bond yields soar. The two-year Treasury yield, which tends to move according to the Fed’s forecast, rose to 3.03% from 2.97% on Friday. The 10-year yield, which affects mortgage rates, rose to 2.82% from 2.78%.
(with information from AP)