The Dow jumped more than 100 points today, bolstered by investors’ buybacks from yesterday’s heavy losses.
As of 8:45 p.m. Thai time, the Dow Jones Industrial Average stood at 31,210.28, up 105.31, or 0.34%.
The Dow fell more than 1,200 points yesterday, its worst fall since June 2020. After the US disclosed higher-than-expected inflation numbers. This will pressure the US Federal Reserve (Fed) to accelerate interest rates.
However, Wall Street trading was positive today with the release of the Producer Price Index (PPI), which fell for the second month in a row.
Investors added to the forecast that The Fed will raise interest rates 1.00% at this month’s monetary policy meeting. The US consumer price index (CPI) was higher than expected.
The inflation figure is the last important economic data. Before the Fed holds a monetary policy meeting on Sept. 20-21
The latest CME Group’s FedWatch Tool indicates that investors weighed 36% that the Fed would raise interest rates 1.00% to 3.25-3.50% at its Sept. 20-21 meeting, and weighted 64% that the Fed would. Raised interest rates by 0.75%
Previously, investors had never weighted that the Fed would raise interest rates 1.00% at its September meeting. And just started to weight 18% yesterday after the US revealed higher-than-expected inflation numbers.
In addition, Nomura analysts predicted that The Fed will raise interest rates 1.00% at its monetary policy meeting next week. After the US revealed inflation numbers that rose more than expected.
Analysts from Nomura and other financial institutions previously expected the Fed to raise interest rates by 0.75% at this session. This will be the third consecutive 0.75% interest rate hike after rising 0.75% in both June and July.
Meanwhile, Nomura expects the Fed to raise interest rates by 0.50% in both November and December. before rising 0.25% in Feb.