Friends
Today’s CPI number came in about as expected. The year over year rate of inflation is running at about 3.1% which is about where we have been for a couple of months now. Remember, the Fed’s target is 2% so the question is have they done enough to keep the momentum going in that direction or could more be necessary in the future? Market participants are mostly convinced that the Fed is done raising interest rates. The question now appears to be when, if, and why the Fed will/would begin to lower interest rates. We may get some answers tomorrow with the Fed release and Fed Chair Powell press conference.
As for today, by the close the Dow Jones Industrial Average was up 173 points to finish the day at 36,577. The S&P 500 was up 21 points to close at 4,643. The Nasdaq Composite Index was up 100 points to close at 14,533. Gold was up $2 to trade at $1,995 per ounce, while oil was down $2.63 to trade at $68.69 per barrel WTI.
Again, we don’t expect the Fed to take any action on interest rates tomorrow, but all eyes and ears will be on Fed Chair Powell at his press conference. Stay tuned.
Have a nice evening everyone.
