Dow Surges Over 100 Points Amid Strong Corporate Performance
Dow Jones Industrial Average reaches 34,466.62, up 0.35%
In a remarkable ascent, the Dow Jones Industrial Average soared upwards, gaining more than 100 points as of 8:33 pm Thai time. The index closed at an impressive 34,466.62, reflecting a remarkable increase of 0.35%. This surge can be attributed to the stellar performances of listed companies.
Leading the charge were renowned companies PepsiCo and Delta Air Lines, whose shares experienced significant growth. Both companies posted earnings that surpassed analysts’ predictions, driving investor confidence sky-high.
Buoying the market further were widespread expectations of the Federal Reserve (Fed) concluding its cycle of interest rate hikes. This sentiment came about after studies into the Consumer Price Index (CPI) and Producer Price Index (PPI) revealed inflation figures lower than anticipated. In light of this, market participants are foreseeing an imminent interest rate hike followed by subsequent rate cuts in the upcoming year.
The latest data from the CME Group FedWatch Tool reveals that a staggering 92.4% of investors anticipate a quarter-point rise in interest rates, pushing the range to 5.25-5.50%, during the Fed’s July 25-26 meeting. Conversely, a minority 7.6% predict the maintenance of interest rates within the 5.00-5.25% range.
Additionally, investor speculation regarding a rate cut gained traction, with figures rising to 42.2%. It is now projected that a 0.25% reduction to a range of 5.00-5.25% could occur during the Fed’s January 30-31, 2024 meeting, a substantial increase from last week’s estimation of 18.0%.
Industry insiders are closely monitoring these developments as they signal potential market shifts in the financial landscape. With notable companies driving the Dow up and investor sentiments swaying, what lies ahead for the global market remains uncertain.
Dow jumps more than 100 points on strong performance of listed companies
As of 8:33 pm Thai time, the Dow Jones Industrial Average was 34,466.62 points, plus 119.19 points or 0.35%.
Shares of PepsiCo and Delta Air Lines rose today. After revealing earnings that exceeded analysts’ expectations.
In addition, the market was supported by expectations that the Federal Reserve (Fed) is drawing to the end of its cycle of raising interest rates. following the release of the Consumer Price Index (CPI) and the Producer Price Index (PPI), showing lower than expected inflation numbers investors are anticipating that the Fed will raise interest rates once more this year before cutting rates the next year.
The latest CME Group FedWatch Tool shows that 92.4% of investors are leaning on the Fed raising interest rates by 0.25% to a range of 5.25-5.50% at its July 25-26 meeting, and 7.6% are leaning on the Fed to maintain interest rates at 5.00-5.25%
In addition, investors weighed 42.2% that the Fed will cut interest rates by 0.25% to a range of 5.00-5.25% at its January 30-31, 2024 meeting, up from 18.0% last week.
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