Wall Street closed mixed on Tuesday, after data from US consumer prices January offered little to change expectations about the path forward for the Federal Reserve (fed) in interest rate rises.
Data showed that the consumer prices in the United States they accelerated in January, but the annual increase was the smallest since late 2021, pointing to a continued slowdown in inflation and likely to keep the Fed on a dovish path of rate hikes.
Meanwhile, Americans continued to be burdened by the increased rental housing costssuggesting that the Fed is far from pausing its campaign to raise interest rates.
“Inflation remains high, although it appears to be slowing,” said Terry Sandven, chief equity strategist at US Bank Wealth Management in Minneapolis. “Looking at the stock price today, I think it could be a bit of profit taking after the strong year-to-date performance.”
Money market traders have priced in at least two other 25 basis point rate hikes this year and expect interest rates to peak at 5.28% in July.
The Fed should continue gradually increasing interest rates to beat inflation, two US central bank officials said on Tuesday, warning investors that borrowing costs may ultimately have to rise more than estimated.
Wall Street has had an upbeat start to the year, fueled by renewed interest in growth stocks that were battered in 2022 when the fed aggressively raised rates to control prices.
The rally, however, stalled last week on signs of a tight labor market and hawkish comments from Fed policymakers.
He S&P 500 is up 8% in 2023, while the Nasdaq Composite it has shot up 14%.
He S&P 500 it lost 1.16 points, or 0.03%, to 4,136.13 units. Meanwhile, the nasdaq Composite rose 68.36 points, or 0.57%, to 11,960.15 units; Meanwhile he Dow Jones Industrial Average it fell 156.66 points, or 0.46%, to 34,089.27 units.
The actions of Coca Cola Co. they fell despite a strong earnings forecast for the full year.
the papers of Marriott International Inc rose 0.8% after the hotel operator forecast first-quarter profit above Wall Street estimates, benefiting from strong travel demand.
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