Wall Street bet on reducing interest in the midst of standards of stocks

Wall Street dealers have continued to bet strongly that the Federal Reserve could soon lower interest rates, with shares that score new standard levels and drop in the returns of treasury bonds along the dollar. Just a day after inflation data in accordance with expectation, traders priced the possibility of reducing interest in September a quarter of a percentage, while some bets indicated the possibility of a larger step. The markets’ expectations of cash facilitation have increased after the statements of the Treasury Scott’s statements, in which he said: “We can incur a series of reduction of interest, from 50 basis points in September.” The shares of about 420 businesses increased within the S&B 500 index. Although the index recorded minor profits amid poor stocks of most major businesses, the shares of ‘Apple’ and ‘Amazon’ jumped, while the ‘Russell 2000’ index rose to small businesses by 2%. The Dow Jones Industrial Index added 1%. In subsequent intercourse, Cisco Systems made lukewarm expectations. The mortgage yields for two years have dropped five basis points to 3.68%. Last month, federal monetary policy makers remained between 4.25% and 4.5% on the target of the interest rate. Pesent said officials would have been reduced if they were aware of the amendment data of the labor market, which was issued a few days after the meeting. Ulrich Hoffman-Borrard of UBS for Global Resources Management said: “With the continued weakness of the labor market, we believe that the US Central Bank will resume next month, with a total of 100 basis points.” US President Donald Trump revealed that the name of the upcoming federal president could be announced before the specified date, adding that he had limited the choice between three or four candidates to follow Jerome Powell. Ian Lingan of BM or Capital Markets said that “with the ongoing markets taking up the change of the real economy’s path to inflation and July work data has become the question: What is the size of the reduction that Powell must provide?” He added: “We don’t expect a step with 50 basis points, but we see a strong possibility that the markets will be in the coming weeks.” The interaction of the markets with inflation data, Sam DustaGel of CFRA, explained that “after the consumer price index data came better than expected, the stock markets became a complete position of anticipation to reduce interest.” He added: “We still expect a 25 basis points in the September and December Social Committee for the Federal Open Market Committee, with a temporary stop in October.” For Rick Reader or Black Rock, the recent inflation report has been slightly stronger than in recent months, but it is less than many, suggesting that it is still optimistic about some of the components of the basic inflation that record lower levels than previous years. He said: “We expect federal interest to start reducing in September, and it may be justified to reduce it by 50 basis points to match the long -term inflation forecasts and the productive improvements we see in different industries.” “The stocks see an extra boost, as the fear of customs duties, profit strength and high possibilities to reduce interest in the fall said.” He added: “While we believe that the happy of the market is still logical, most of the stock profits have already been fulfilled this year.” Mullen pointed out that inflation has remained low, and that many companies have avoided transferring the high costs to consumers, but there is still a question about the extent of this tendency to continue. He warned that the greatest danger of the federal is that inflation can suddenly rise due to customs duties. He said: “Keeping just inflation data is quiet, that doesn’t mean it won’t rise in the future.” The morale of the investors and the upcoming data, Mark Hackett of Nationwide, sees that the easiest path of the market is the rise, after the S&P 500 index has broken the last trading scope, adding: ‘Individual investors find themselves right in the strategy to buy the decline, as a result of the velocity of the recent drop. market has been shown. The basic inflation in the United States accelerated in July, but the cost of goods exposed to customs duties did not rise to the extent that they were afraid. The price of the producers to be released on Thursday is expected to submit additional indicators on the groups that directly affect the federal federal index, which will be released later in the month. “The cost of customs duties is still absorbed within the margins of corporate profits instead of transferring it to consumers, giving federal space to transform without increasing inflationary risks,” said Fouad Razzaq Zadeh of “City Endex”. He pointed out that some companies are postponing price increases for fear of consumer spending, which increases interest in retail sales and consumer confidence for Friday.