S&P 500 hits 3-month high after inflation slows – Daily Market Brief, August 11, 2022

After a key inflation reading revealed a better-than-anticipated deceleration in the rate of price inflation, the stock market soared on Wednesday.

The Dow Jones Industrial Average increased around 540 points, or 1.63 per cent, to finish the day at 33,309.51. The S&P 500 rose more than 2 percent to 4,210.24, its highest level since the beginning of May. The Nasdaq Composite climbed roughly 3 per cent to 12,854.80, its highest closing level since late April and up 20% from its low, technically entering a bull market.

The headline consumer price index for July increased 8.5% annually and was unchanged from June. The Federal Reserve will evaluate the report with other important economic data before its September meeting, at which it is expected to raise interest rates once more.

Key Factors for Today

– Asia stocks got a boost from their global counterparts and traded positively
– European stock market futures point to a slightly higher open
– Some of DXY’s losses after the CPI release has been recovered

Coming Up 

– US PPI
– IEA Oil monthly report
– Speech from Fed’s Daly
– Supply from the US

U.S. equities end near their session highs, sharply higher

Major US indices ended yesterday significantly higher, near their highs for the day. The gain of 535.41 points (or 1.63%) brought the Dow Industrial Average up to 33,309.00. Topping out at $33,364.41. The S&P 500 gained 2.13 per cent or 7.75 points. The daily candle high was $4,211.03. The NASDAQ gained 360.89 points, or 2.89 per cent, to end the day at 12,854.81. 

Most European markets are expected to open higher following yesterday’s gains

European markets are expected to edge higher on Thursday as investors revise their expectations for future monetary policy in response to a lower-than-anticipated U.S. inflation report. 

The FTSE 100 is predicted to fall by about 2 points, to 7,505, while the DAX is predicted to rise by about 66 points, to 13,765, and the CAC 40 is predicted to rise by about 32 points, to 6,553.

Disney stock soars as it posted better-than-expected results

The Walt Disney Company announced on Wednesday that Disney+ subscriptions grew to a record 152.1 million during the fiscal third quarter, surpassing the 147 million projections made by industry analysts. On the same day, the corporation introduced a new price structure for Disney+ that includes ad-supported content to turn a profit from its streaming operations.

Japanese Yen Soars on Dollar weakening

After the US CPI came in lower than expected, the Japanese Yen soared. In the North American session, USD/JPY traded as low as 134.03, down 1.6% as the dollar weakened versus all major currencies. 

Headline US CPI printed at 8.5% year-on-year through the end of July, versus 8.7% anticipated and 9.1% earlier. Core US CPI remained at 5.9% but was lower than expected at 6.1%.

Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances, or needs.

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