Wall Street indicators clash with the wall of inflation

The powerful climb of US stocks stopped with the high inflation that raised the yields of the mortgage and the returns of dollars, at a time when clients reduced their bets to lower the Federal Reserve for interest rates next month. After a 30% increase in its lowest level in April, the S&P 500 index moved slightly, amid profits in shares of major technology companies, while more than 350 shares in the index fell. ‘Intel’ shares jumped after it was reported that the US government was looking for an interest in the company, while ‘Applaid Materes” issued negative expectations after the market was closed. The revenue of the two -year bonds increased 6 to 3.73%. Although the financial markets still expect a reduction of at least half a percentage of interest rates in 2025, the risk of reduction in September has dropped to about 85%. The dollar has also risen against all currencies of advanced economies. The planting at wholesale prices accelerated the acceleration of US wholesale prices in the largest rate in three years in July, suggesting that companies are doing part of the high import costs associated with customs duties. The producers’ price index rose 0.9% compared to the previous month and 3.3% over last year, while the cost of services rose by 1.1% last month. Although consumer price data indicated a less intense transition in July this week, and with the slowdown in the labor market, federalism is expected to reduce interest next month. But strong inflation data can push some officials to wait. Chris Zakarili of Northwitt aset Management said that the producers’ pricing string shows that inflation is entering the economy, even if consumers have not yet felt, and added: “Given the number of moderate consumer price index Tuesday, it is surprising and not welcome.” Regarding Clark Jeerin of ‘Cleave Investments’, he said that the strength of the producers’ price index, compared to the consumer price index, means that businesses carry most of the cost of fees instead of transferring it to the consumer. With the high cost of input, it can affect the profits of companies in the third and fourth quarters, according to Fouad Razzaq Zadeh of “City Endex” and “Forex.com”. But he added that the negative impact is currently limited. A possible effect on interest decision Razzaq Zadeh indicated that the federal could exceed this increase as once, and that its concerns about the labor market could make him more willing to resume the reduction in September. Jenna Bolvin of Bulvin Wildetle management believes that the leap in the prices of producers reflects the pressure of continuous costs, some of which are the result of fees, but the tendency of the basic inflation is still under control. She said: “It is a reminder that the way to reduce interest will not be in line, but that the broader tendency after the decline in inflation is still standing. There is no reason to panic, but it’s time to concentrate on the basics and maintain diversification and search for companies with price power and healthy margins.” As for Chris Larak, from “e -tech” from “Morgan Stanley”, he said that the data “did not close the door to reduce interest in September, but it reduced the possibility slightly compared to what it was two days ago.” Ian Lingan of BM or capital markets has seen that the numbers have weakened expectations to reduce 50 basis points, and that the skeptical militant ammunition provided to the skeptical militants, even in a 25 -point reduction next month. Thierry Wizamman expected “Macquari Group” that the federal would provide a ‘strict’ reduction and not be ‘soft’ in September, if fundamental changes did not occur in data or markets. Regarding Eugenio Aleman of “Raymond James”, he said that the full impact of the fees will appear in the next month’s data, which complicates the September decision, as it is a 25 basis points reduction, but the reduction of 50 basis points “is probably outside the accounts.” Several official positions, Treasury Secretary Scott Besent, said he does not ask for a series of discounts, but only indicates that the models indicate that the ‘neutral rate’ is about 1.5 percent. He explained in an interview with ‘Fox Business’: ‘I did not tell the federal what to do’, referring to his previous statements about the possibility of starting a series of discounts. The head of the Federal Reserve in St. Louis Alberto Mosalim, told CNBC that it was early for him to make a decision to reduce interest in the meeting next month, while his counterpart in Richmond Tom Parkin indicated indications of improving consumer conditions in July after weakness earlier this year. Analysts and investors are preparing to follow up on Friday sales report and a major indication of consumer confidence, looking for indications of the feeling of US families about the economy.