US stocks closed higher, the Dow Jones Industrial Average rose 216 points as December inflation slowed. Fed hopes to slow rate hikes Bond yields weakened to 3.4%, crude oil prices rose, most European stock markets closed higher.
The Dow Jones Industrial Average (DJIA) closed on January 12, 2023 at 34,189.97 points, an increase of 216.96 points or +0.64% after December inflation slowed. causing more expectations that the US Federal Reserve (Fed) is slowing the increase in the interest rate.
The S&P500 Index closed at 3,983.17 points, up 13.56 points, +0.34%.
The Nasdaq Index closed at 11,001.10 points, up 69.43 points, +0.64%.
December’s headline CPI, including food and energy, fell 0.1% from November and rose 6.5% from a year earlier, in line with analysts’ expectations Core CPI excluding food and energy was also in line with analysts’ expectations, up 0.3% from November and up 5.7% from a year earlier.
The 10-year Treasury yield weakened to 3.4% from 3.5% the previous day.
The latest inflation data will be a big issue at the Fed meeting starting January 31. The interest rate hike is not over yet.
Boston Fed President Susan Collins on Wednesday backed a 0.25% rate hike at a meeting later this month. Similarly, Philadelphia Fed President Patrick Harker expects interest rates to rise 0.25% from now on.
Some analysts said recent inflation does not indicate whether the Fed will change its interest rate decision, Zima Shah of Chief Asset Management said in an analysis. Not only is the number in line with the forecast It remains unclear whether the Fed will raise interest rates by 0.25% or 0.50% at its meeting at the end of January. And it is not clear whether the Fed will stop raising interest rates at the end of 2023.
for other economic data Initial jobless claims totaled 205,000 last week, below the 215,000 expected by analysts.
Disney stock rose 3.6% after reports that activist investor Nelson Peltz presented an agenda for shareholders to become a board member.
Shares in KB Home fell 2.8% after it reported lower-than-expected earnings and earnings.
American Airlines shares rose 9.7% after revising fourth-quarter profit expectations.
Investors await the quarterly earnings report of the major banks. both JP Morgan Bank of America, Citigroup, Wells Fargo on Friday.
Most European stock markets closed higher. led by retail stocks Although US inflation in December This alleviates concerns about a large increase in rates by the US Federal Reserve (Fed).
UK retail stocks rose after the company’s performance showed strong consumer spending over Christmas. Tesco shares rose 0.9% after maintaining its full-year profit forecast.
The STOXX 600 Index closed at 450.22 points, up 2.81 points, +0.63%.
The London Stock Exchange FTSE 100 closed at 7,794.04 points, up 69.06 points, +0.89%.
The French CAC-40 stock market index closed at 6,975.68 points, up 51.49 points, +0.74%,
The German DAX stock market index closed at 15,058.30 points, up 110.39 points, +0.74%.
WTI crude for February delivery rose 98 cents, or 1.27%, to settle at $78.39 a barrel. North Sea Brent crude for delivery in March rose $1.36, or 1.65%, to settle at $84.03 a barrel.