Wall Street indicators see fluctuations before inflation data

US stock indicators have seen fluctuations during the entire session, with traders who do not want to make a big bet on issuing the most important inflation data, to get evidence on the interest rate path by the Federal Reserve in the next few months. After several fluctuations in the period before the release of the consumer price index, the “S&B500” index closed 0.1%. Although most of the shares listed in it have progressed, very large technology companies have been put under pressure again. Options traders are preparing for the biggest movement in the S&B 500 index during the day of the consumer price report, since March 2023. The index is expected to move by 1% in any direction on January 15, based on the cost of buying and selling options at the current price, according to Stewart Kaiser of City Group. The attention is focused on the inflation report. “All eyes are now turning to the consumer price index report released on Wednesday, which is the most important reading of inflation in modern memory because it will feed the Mobic market morale at the FBI,” said SWC Chris Bregani. He added that if the inflation rate is strong, he “can contribute to the idea of ​​the federal not to discount in 2025, and perhaps even raise interest rates, while poor inflation data can help calm the FBI’s fear.” The data showed on Tuesday that the producers’ price index was unexpectedly reduced in December, using the cost of food costs and the stability of service prices. However, many of the indicator components that feed the preferred inflation science at the Federal Reserve – measurement of personal consumption expenses – were mixed in December. “This means that the federal and markets will not receive support from the input of the product price index, especially in the personal consumer expenditure index, as was the case in November,” Krishna Joe van Evercore said. He added that these conditions “in the near term, in both directions exposed to the consumer price index report issued on Wednesday.” The pressure on technology businesses ended the S&B 500 index at a level higher than the average of 100 days, and the Nasdac 100 index fell 0.1%, while the Dow Jones Industrial Index rose 0.5%. As for the ‘Seven Greats’ index (Apple, Amazon, Alphabet, Invidia, Meta, Microsoft, Tesla), it fell by 1%, while the ‘Russell 2000’ index added 1.1%. The shares of Housing Construction Companies jumped after the Gains of KB House exceeded expectations. The shares of “Eli Lily” fell by more than 6.5%, amid disappointing sales. The yield on US Treasury bonds has not changed at 4.78%for ten years. The dollar fell after Bloomberg News said Donald Trump’s new economic team was studying gradual increases in customs tariffs, which helps avoid high inflation. The oil fell off the highest level in five months, as news of the progress in the ceasefire between Hamas and Israel helped calm the risks of Russian and Iranian supplies. The calm of inflation is likely to calm the basic inflation in the United States at the end of 2024, against the backdrop of a flexible labor market and a fixed economy, support the prevailing Federal Reserve Bank approach to lowering interest rates. The consumer price index, with the exception of food and energy, is expected to rise by 0.2% in December, after four consecutive months of increases by 0.3%, according to average expectations in the “Bloomberg” survey of economic experts. The basic consumer price index is expected to increase, which is a better image of basic inflation, by 3.3% than the previous year, corresponding to the lectures of the previous three months. In a survey conducted by ’22 in Research ‘, 47% of investors expected the market’s response to the consumer price index report’ far from risk ‘, and 29% expected the report to provoke a reaction that encouraged the risk, while 24% saw that the response was’ mixed / not remembered’. The poll also showed that 53% of respondents believe that financial conditions should be tightened. Dennis Deboser of the company said: “It seems that there is a need to raise interest rates or some emphasis in financial conditions, so that the economy can achieve a total balance (the high level of basic expenses for personal consumption to almost 2% and full operation),” said Dennis Deboser of the company. The beginning of the results announcing the results also prepares Wall Street for an informal beginning of the results of announcing the results, as the results of major banks will be released on Wednesday. The lending banks, including “GB Morgan Chase” and “Wales Vargo”, will constantly prevent profits from trade and investment banking, which helps compensate for a decrease in net interest income, caused by high deposits and slowdowns in loans. “As for the profits of major banks, net interest income is the most important data point to be monitored.” He added: “If the banks can benefit from borrowing at cheaper prices compared to their loan portfolio, it’s a constructive sign for the next year.”