Wall Street is trading without a defined trend this Wednesday, with the Nasdaq leading the purchases, after the mixed sign on Tuesday and after knowing the August CPIwhich will be decisive for the Federal Reserve (Fed) opt for a cut of 25 basis points or 50 at its meeting on September 18. The market is also discounting the First presidential debate between Harris and Trump. Regarding inflation, the The headline rate has improved forecasts after falling to 2.5% from 2.9% previously, while forecasts were for 2.6%, and the underlying has met expectations and remained at 3.2%. However, The underlying rate registered a monthly advance of 0.3%, one tenth above expectationsand the overall index matched expectations after rising 0.2%, also repeating the rise seen in July.
Michael Brownsenior research strategist at Pepperstone, believes that this decline in inflation will have little impact on the Federal Reserve meeting this week, as «it is clear that the FOMC has already gained the necessary confidence that inflation will return to the 2% target over the medium term, and Labour market developments are now the key determinant of both the pace and magnitude of rate cuts.«. «A A 25 basis point cut at that meeting remains the baseline scenarioalthough faster cuts remain possible after that should incoming employment data show a further deterioration in labour market conditions,» it details. For its part, Naeem Aslamdirector of analysis at Zaye Capital Markets, points out that «today's year-over-year inflation data brings a breath of fresh air, suggesting that the Federal Reserve could have room to cut rates more aggressively,» although he warns of «a twist in the story,» since «Core CPI figures have not painted such a rosy picture, hampering rate cuts«.
HARRIS AND TRUMP'S FIRST FACE TO FACE
The political sphere is the other point of interest for the market. Race to the White House advances with force, especially after the First presidential debate between Kamala Harris and Donald Trump. Both candidates starred in a heated and rough encounter in which the current vice president put the former president on the defensive on issues such as abortion rights, the January 6 insurrection or foreign policy. «The Tense US presidential election debate between Kamala Harris and Donald Trump had a limited impact on markets. While polls suggest that voting intentions leaned more towards Harris as a result of the debate, The elections will continue to be close» said Russ Mould, investment director at AJ Bell. «Although all the polls point to Harris as the winner, it is far from clear that the outcome of the debate will have much of an impact on what is expected to be a very close election. In terms of markets, it is very difficult to determine their impact.since the candidates They also did not give many details about their economic policies.«, they add at Link Securities.
COMPANIES AND OTHER MARKETS
On the business level, GameStop plummets 13% after disappoint with their sales in the second quarter of the year. In other markets, oil West Texas rises by 2.10% ($67.29) and the Brent advances 1.78% ($70.64). For its part, the euro depreciates by 0.04% ($1.1014), and the ounce of gold falls by 0.09% ($2,541). In addition, the 10-year US bond yield rebounds to 3.67% and the bitcoin loses 2.16% ($56,553).