#StockMarket #RateCut #CPIUpdate
Stock Market Today: Live Updates
As I prepare for the consumer inflation report for August, scheduled for release on Wednesday morning, U.S. stock futures remain relatively stable. In after-hours trading, GameStop's stock plummeted by 10% after modifying an existing market sale agreement with the U.S. Securities Exchange Commission, allowing it to offer up to 5 million additional shares of its common stock.
During the regular trading session on Tuesday, the S&P 500 rose nearly 0.5%, while the Nasdaq Composite increased by 0.8%, bolstered by a surge in $NVIDIA's stock. This represented consecutive gains for both the broad market index and the tech-focused index. Conversely, the Dow Jones Industrial Average experienced a decline of 0.2%, primarily due to a drop in $JPMorgan shares impacting the blue-chip index.
Market participants are keenly awaiting a significant economic update on Wednesday morning: the consumer price index for August. Economists surveyed by Dow Jones forecast a 0.2% increase in the headline CPI from the previous month and a 2.6% rise compared to the same month last year.
The CPI figures, along with Thursday's producer price index, could influence the anticipated extent of a rate cut expected at the conclusion of the Federal Reserve's two-day meeting on September 18. Current trading in Fed funds futures indicates a 69% probability of a 25-basis-point cut and a 31% chance of a 50-basis-point reduction, as per CME's FedWatch Tool.
Kristina Hooper, Invesco's chief global market strategist, expressed her view on CNBC's "Closing Bell": "I believe we will likely see a 25-basis-point rate cut next week, as a 50-basis-point reduction would raise concerns and imply a sense of accountability." Hooper further remarked, "While I don't think that maintaining restrictive monetary policy for an extended period will cause irreparable harm, I do believe that every day we sustain these rates increases the likelihood of a recession." She suggested that central bankers may need to signal next week through their dot plot—depicting policymakers' rate projections—that further reductions could be forthcoming sooner rather than later.
Original Article: https://www.cnbc.com/2024/09/10/stock-market-today-live-updates.html
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