There was a spike in volatility last week when the US CPI report ticked down to 8.5% from 9.1%, missing the forecast of 8.7%.
The fall in US producer price index (PPI) triggered a fresh round of buying on Wall Street and the S&P 500 has set a new three month high.
Equity traders pounced on the weaker-than-expected US CPI data as the Federal Reserve might not be as hawkish as initially feared.
It has been a choppy 24 hours in the markets as the Fed Reserve carried out a dovish hike yesterday, and today’s GDP report suggests the country is now in a recession.
Stock markets are pushing higher ahead of the Federal Reserve meeting, even though it is widely believed the bank will reveal a large interest rate hike.
Equity markets are experiencing low volatility today as traders look ahead to the Federal Reserve’s meeting on Wednesday, interest rate futures are factoring in a high probability of a 75-basis points hike.
JPMorgan’s share price peaked in September 2021, and it has been trending lower since. Banks usually outperform in environments where interest rates are rising or at least where the perception is that rates will be lifted.
Yesterday evening, the Federal Reserve released the minutes from last months meeting.
A dip in government bond yields has paved the way for bargain hunters to swoop in and snap up European equities.
Stock markets have rebounded from the brutal losses that were witnessed yesterday as government bond yields have cooled a touch.
Prices may be delayed by 5 seconds. Prices above are subject to our website terms and conditions. Prices are indicative only
© 2022 Equiti, All Rights Reserved