Wall Street has rebounded strongly this Wednesday (Dow Jones:+1.65%; S&P500:+1.83%; Nasdaq:+2.45%), driven by the US banking profitswhich today inaugurated the results season for the last quarter of 2024, and for the fall in core CPIwhich has improved forecasts, being below estimates. All eyes have fallen on him December CPIwhich has risen slightly in the general rate to 2.9% from 2.7% the previous month, while The underlying variable has surprised with a drop of one tenth, to 3.2%.
Michael Brownsenior research strategist at Pepperstone, says that «the CPI figures don't add much to the broader discourse, but rather serve to reaffirm that underlying price pressures remain relatively persistent and that the path back to the 2% inflation target will be somewhat turbulent.» «Consequently, FOMC still on track to 'skip' January meetingparticularly in light of the resilient nature of the labor market and amid increased risks of upward inflation stemming from the likely trade policies of President-elect Trump's Administration,» he adds. The analyst questions whether the Fed may choose to do so. a longer pause in its easing of interest rates, and sees «it is likely that further rate cuts will be made this year, returning to neutrality, although at a much slower and more cautious pace than that observed in 2024«. For his part, Kambiz Kazemiinvestment director at Validus Risk Management, points out that «the fact that the inflation figure excluding food and energy was actually lower than expected will be well received by the market«The market had discounted expectations of any rate cuts until October, an impressive swing in recent months. If this figure is followed by equally stable figures, we would expect the US dollar to weaken and both the market and the Federal Reserve adopt a less aggressive tone«, he explains. The data will be decisive for the Fed rate decision ahead of its meeting on January 29 and for which the market discounts, with a 97.3% probability according to the CME Group's FedWatch tool, that the US central bank will make a pause in its flexibility process monetary. In this sense, investors have followed with interest the statements of several members of the organization such as Williams, who has anticipated a «choppy» decline in inflation towards 2%. Precisely, the Fed announced this Wednesday its Beige Book, which shows an improvement in employment and «modest» inflation in the last part of 2024.
BANKS ARE ACCOUNTABLE
At the business level, the large US banks as JP Morgan, Goldman Sachs, blackrock, Wells Fargo either Citigroup This Wednesday they gave the starting signal to the results season for the fourth quarter and for the whole of 2024. Bank of America either Morgan Stanley They will do the same on Thursday. In the case of JP Morganhas risen 1.95% after registering in the fourth quarter of 2024 some profits of 14 billion dollarswhich represents a 50% increase compared to the same period of the previous year.
Wells Fargo has also advanced (+6.63%) to increase your net profit in this period 47.39%up to 5,079 million dollars from 3,446 million the previous year. Likewise, Goldman Sachs has celebrated with increases of 6% that have increased its profit by 71% in 2024a period that closed with profits of 13,525 million dollars.
BlackRock has registered a profit of 6,612 million dollars in 2024an increase of 16% compared to the 5,692 million obtained in the previous year. For its part, Citi achievement break out of losses from a year earlier and recorded a net profit of $2.9 billion, or $1.34 per share, in the fourth quarter of 2024. Its shares have risen 6.45%.
OTHER MARKETS
In other markets, oil West Texas has risen 3.94% ($80.55) and the Brent has advanced 3.22% ($82.48). For his part, the euro has depreciated 0.10% ($1.0296), and the ounce of gold has gained 1.40% ($2,719). Furthermore, the 10-year American bond yield has relaxed to 4.651% and the bitcoin has risen 3.18% ($99,611).
