Wall Street is trading with a mixed sign this Tuesday after moderate purchases on Monday, which led to S&P 500 and the Nasdaq to mark new highs thanks to the impulse of Nvidiaand as investors focus their attention on the inflation and in the Federal Reserve (Fed). «The market will not do anything until it knows American inflation and the Fed's probable refocusingso we have to wait without making any decision,» they indicate in Bankinter. The US central bank begins its monetary policy meeting and will announce its conclusions this Wednesday. After the latest speeches by several members of the organization, and their insistence that they need confidence that inflation is close to the 2% objective, the market discounts that will again maintain interest rates at 5.25%-5.5%. However, the most important thing about this new conclave will be the updating your economic projections and, above all, of his dot diagram, in the expectation of knowing whether it will maintain the three rate cuts announced for 2024 or lower its forecasts. «We believe that They will be a little more 'hawkish/tough' than at the March meetingwhen they estimated three rate cuts each year between 2024 and 2026. We estimate that now they will be positioned with only two drops in 2024 (although we do not rule out that, in the end, they will only apply one if the economy continues without weakening) and perhaps some other gentle nod in the same direction,» they assess from Bankinter. An opinion shared with Ipek Ozkardeskaya, senior analyst at Swissquote Bank, who believes that «taking into account economic data and inflation trends, we are more likely to hear a hawkish statement from the Fed than the opposite«.
ATTENTION TO INFLATION
And along with the Fed, the other main protagonist of the week will be the inflation. The same day that the organization announces its monetary policy decision, the market will have known the May CPI. The consensus estimates that it will repeat in the 3.4% general rate and moderate slightly to 3.5%from 3.6% the previous month, in its underlying variable, demonstrating their resistance to retreat further. «But We should not rule out that something worse than expected will turn out. after observing the unexpected rebound in Personal Earnings published last Friday (+4.1% from +3.9%)», Bankinter emphasizes.
COMPANIES AND OTHER MARKETS
At the business level, Oracle will announce its quarterly results after the market closes. On the other hand, Elon MuskCEO of Tesla and Space ban apple devices in their companies after the Cupertino company announced a partnership with OpenAI. Furthermore, the actions of General Motors rise nearly 2% after the company announced that its Board has approved the repurchase of own shares worth 6 billion dollars.
In other markets, oil West Texas rises 0.10% ($77.81) and the Brent earn 0.21% ($81.76). For his part, the euro depreciates 0.37% ($1.0723), and the ounce of gold advances 0.12% ($2,330). Besides, the 10-year American bond yield relaxes at 4.445% and the bitcoin loses 3.7% ($67,050).