On Wednesday (November 15th) in the US market, supported by more encouraging inflation data, the stock market continued to rise on the basis of a strong rebound in the previous trading day.
As of press release, the Dow Jones Industrial Average rose 0.35%. The Standard&Poor's 500 Index and Nasdaq Composite Index rose 0.42% and 0.55% respectively.
After the benchmark 10-year US treasury bond bond yield plummeted 18 basis points on Tuesday, it rose more than 10 basis points on Wednesday.
The Producer Price Index (PPI), which measures wholesale prices, fell 0.5% in October, marking the largest monthly decline since April 2020. However, not all economic data is positive, as retail sales have also declined.
Jay Hatfield, founder and CEO of Infrastructure Capital Consulting, said: "Obviously, interest rates are a key driver of the stock market because PPI is very, very cool, as we expected." "Not because of PPI, but because retail sales are a bit hot compared to expectations
Wall Street has just ended a strong trading day, with the S&P 500 and Nasdaq index hitting their best day since April. These increases occurred after the Consumer Price Index (CPI) remained stable in October, and the Dow Jones Consensus expects a slight increase.
In terms of corporate news, Target's third-quarter performance was better than expected, with its stock price rising 17%. The stock of clothing company VF rose nearly 15% after JPMorgan Chase upgraded its rating from underweight to neutral.
As lawmakers attempt to avoid a government shutdown, Wall Street is also turning its attention to Washington. On Tuesday evening, the House of Representatives passed a bill to avoid a government shutdown, which will be submitted to the Senate for vote. If passed by lawmakers, the legislation will be submitted to President Biden. If there is no funding bill, the federal government is expected to close by the end of this week.
As the US dollar rose, gold prices fell on Wednesday, and expectations that the Federal Reserve may end interest rate hikes limited the decline in gold prices. As of press release, spot gold fell 0.03% to $1962.22 per ounce.
The US dollar index rose 0.4%, weakening the attractiveness of gold prices.
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Data shows that after consumer prices in the United States remained unchanged in October, gold prices rose by more than 1% in the previous trading day. The October PPI data is the latest sign of the easing of inflationary pressure.
David Meger, Director of Metal Trading at High Ridge Futures, said: "The results of CPI and PPI are positive as they continue to support gold prices, as expectations of inflation continuing to fall increase expectations that the Federal Reserve has already completed rate hikes.
According to the CME FedWatch tool, the probability of the market pricing that the Federal Reserve will maintain interest rates unchanged in December is 100%.
Although gold is considered an inflation hedge, rising interest rates have weakened the attractiveness of unprofitable gold.
Tai Wong, an independent metal trader in New York, said, "With the support of yields, gold initially rose and then fell. I believe the outlook for (gold) assets will remain optimistic, but the trend will be more cautious
