Buying on Wall Street with an eye on the Fed: the S&P 500 renews highs

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By TP

Shopping at Wall Street this Wednesday that have led the S&P 500 to renew all-time highs, as investors focus their attention on the Federal Reserve (Fed) and the inflationwithout losing sight of the geopolitical situation in Middle East and the season of results. «The event that is eagerly awaited and without whose outcome the market will remain undecided and careful is the Israel's retaliation on Iran. Netanyahu probably aspires to influence the American elections by favoring Trump, so, interpreted from that perspective of political strategy, it is possible that he will wait a little longer for the retaliation to get closer to November 5,» they assess at Bankinter. The market also remains attentive to Hurricane Miltonwhich has gone to category 5, and whose arrival on the west coast of Florida has caused companies to decide to stop their operations. The governor of the Federal Reserve has already warned about its impact, and that of Helene, on the US prospects, Adriana Kuglerwho has claimed to follow his economic effects.

INFLATION, PROTAGONIST

This Wednesday's economic agenda includes the publication of the Fed minutes corresponding to its last monetary policy meeting in which it chose to cut interest rates by 50 basis points. Thus, after the publication of a strong September jobs reportthe probability that the agency will carry out another jumbo reduction has lost strength and now the market waits, with an 86% probability, according to the CME Group's FedWatch tool, which The US central bank lowers rates in November by 25 basis points. Although now everything depends on inflation, which will be the protagonist of the week. He September CPI will be announced on Thursday, while on Friday the production prices of the same month. In this sense, the consensus foresees a moderation of the general rate up to 2.3% from 2.5% in August; for the underlying is expected to be maintained stable at 3.2%. «If we see any unwanted strengthwe could see the probability of no cut increasing as quickly as the probability of a 50 basis point cut last week,» says Ipek Ozkardeskaya, senior analyst at Swissquote Bank

NVIDIA OVERCOMES RESISTANCE

Nvidia gave this Tuesday a new sign of strength by rising 4%, leading the Nasdaq to lead the gains in the session. With these increases, the company achieves overcome key resistance that presents in the short term at $131.26. «The formation of a symmetrical triangle. This figure is a continuation of the trend and has an upward objective of $170, the result of projecting the short side of the triangle on its breakout. However, first you have to overcome the annual maximums that it presents at 140.76 dollarswhich are also the historical highs,» indicates César Nuez, technical analyst at BitcoinDynamic. «The good levels of accumulation that we can observe in its daily price series only give consistency to its main uptrend«Nuez adds.

COMPANIES AND OTHER MARKETS

On a business level, this Friday the results season of the third quarter thanks to the large US banks such as JP Morgan, Bank of New York Mellon, Wells Fargo either BlackRock. Also, it is news Googlesince the US Department of Justice (DOJ) has made a series of recommendations to the company to avoid your monopoly on the Internet.
Boeing drops (-3.5%) after reporting that it has salary increase proposal withdrawn which he had carried out to nearly 33,000 workers who are on strike in the United States. On the opposite side, Arcadium Lithiumwhich shoots up 30% in the session, after Rio Tintothe second largest mining company in the world, has announced its acquisition by 6.7 billion dollars. The sector that most benefited from the session has been the cruise companies, thanks to the support received from Citi. So, Norwegian Cruise Line rises 10% on the US stock market, and other companies such as Royal Caribbean (+4.5%) and Carnival Corporation (+7%). Furthermore, the actions of the media platform reddit rise 1.5% after receiving a 'buy' recommendation from Jefferies, accompanied by a $90 price targetwhich represents an upside potential of 27% from current trading levels.
tesla is also being a protagonist in the middle of the high expectations for him launch of the «Cybercab» robotaxi by Elon Musk that will take place this Thursday. In other markets, oil West Texas drops 1.24% ($72.62) and the Brent fell 1.26% ($76.18). For his part, the euro depreciates 0.25% ($1.0952), and the ounce of gold loses 0.21% ($2,629). Furthermore, the 10-year American bond yield advances to 4.043% and the bitcoin loses 0.58% ($62,852).