Purchases on Wall Street, driven by Oracle, despite the rise in the CPI

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Wall Street trades with purchases this Tuesday, driven by the strong gains of Oracle after its results, and after knowing the rebound in United States CPI in February. The The general rate has risen one tenth in February, to 3.2% in the interannual rate, while core inflation has fallen by the same magnitude, to stand at 3.8%. Both magnitudes have been above expectations, since the general index had been expected to remain at 3.1%, and the underlying rate to fall to 3.7%.
Mahmoud Alkudsisenior market strategist at ADSS, assures that «minimal progress has been made in terms of disinflation, so we may see a change in the Federal Reserve's roadmap, given that the 2% target appears to be out of reach.» «Given that inflation remains more persistent than previously thought, we can expect lFederal Reserve maintains 'wait and see' approach until we see that inflation tends to decrease constantly,» he adds. For his part, since Pantheon Macroeconomics remind that «another CPI report will be released before the May FOMC meeting, as well as two full rounds of PPI and PCE data, so Fed officials need not rush to jump to judgment based on this data«. «We remain of the view that upcoming inflation data, coupled with a weak March payrolls report and further evidence of slowing wage growth, They will give the Fed room to ease its policies in May. But at this moment it is very close and a delay until June would not be a surprise,» they add. It must be remembered that, due to the time change in the United States, which in Europe will not occur until the last weekend of March, the time difference with Spain is reduced by one hour. Therefore, Wall Street will open at 14:30 Spanish time; and will close at 9:30 p.m.. And the inflation data, which is usually published at 2:30 p.m., has been published at 1:30 p.m.


The technology group Oracle soars 11% in the session after exceeding consensus forecasts with its fiscal third quarter results, driven by the rise of artificial intelligence (AI). Additionally, the market has been pleased that Oracle announced that it plans to release details next week on a association with the technology giant Nvidia. Regarding the debate of whether there is a stock bubble in Nvidia and the other 'magnificent' six (Apple, Alphabet, Amazon, Meta, Microsoft and Tesla), JP Morgan is positive with the potential of this group of companies, since its valuation remains attractive, in relation to its potential to continue increasing its profits.


In other markets, oil Brent down 0.01% ($82.20); he euro it depreciates 0.17% ($1.0905); and the ounce of gold falls 0.73% ($2,172), close to record levels. Besides, the 10-year American bond yield rebounds to 4.145%; and the bitcoin it gives up 0.3%, up to $72,023, after setting new all-time highs this Monday.