The US stock rally continues with the increasing interest rate expectations
US stocks rose on Thursday and recorded new records amid the hope that the inflation report that is compatible with expectations will push the Federal Reserve to lower interest rates next week. The S&B 500 index closed 0.8%, led by shares of material and healthcare companies. The index scored profits for the fourth consecutive day, which is the highest range of profits since July. The Dow Jones Industrial Index of Leadership shares of 1.4%, led by the profits of the “3m” and “Sherwin-Williams” shares. The Nasdaq 100 index, dominated by the technological sector, increased by 0.6%. The basic consumer price index, with the exception of food and volatile energy prices, rose 0.3% compared to July, according to the data of the Work Statistics office released on Thursday. In the addition of these components, the total consumer price index increased by 0.4%, which is the highest level since the beginning of the year. The road is paved to reduce interest next week, Dominic Pabaldo, the most important strategy of multiple assets in “Morning Star Wilde”, said in a memo: “While inflation numbers remain higher than the purpose of the announced Federal Reserve of 2%, the data is not worried”. David Kelly, JP Morgan Asset Management, see in an interview with Bloomberg TV after the report was issued that “these numbers are very close to what we expected to be big surprises.” He added: “Everyone should be patient and not exaggerate their reactions.” Also read: The US budget records the third largest historical deficit despite the revenue of the records, the requests for high unemployment subsidy at a separate level, US unemployment subsidy requests jumped to its highest level last week, indicating that the activity of workers’ demobilization increased amid a sharp slowdown in employment. Initial requests increased by 27,000 requests to 263,000 requests in the week ended September 6, which is the highest level since October 2021, according to the Ministry of Labor Data issued on Thursday. Also read: Edit the US labor market data by reducing 911 thousand posts. Strategists believe that the reduction of interest rates by the Federal Reserve is certain because of the weakness of the US job market. Dennis Deboser, president and main market strategy at “22V Research LLC”, indicated in a memorandum of clients: “The Federal Reserve was explicit that the discount aimed at reducing the risks to the labor market.” US stocks could end the year at a height that traders expect the stocks to ignore poor work data to end the year at a height, according to the latest poll conducted by ‘Markets Paul’. Investors are still optimistic, even with the rise of warning signs of the 24 -day relative index within the S&B 500 index. At the same time, high -performance technology stocks see so well that some investors raise the prices of sales options to protect public profits. Also read: The US Secretary of Trade is optimistic about the talks with Taiwan and Switzerland in other news, the share of the “Centene” business increased by 9% after the health insurance company confirmed its expectations for the whole year. The part of the “Warner Brisser Discovery” business increased by 29% after informed sources reported that Paramount Sky Dance was preparing to make a buying offer. In another context, the European Central Bank held interest rates and lowered its forecast for inflation for 2027, while its expectations were kept unchanged for the year 2025 and 2026.