Wall Street trades with purchases after yesterday's moderate fallsafter the minutes of the last Federal Reserve meeting (July 30-31, when rates remained unchanged) They will point to a «probable» rate cut in September, as the markets expect. Investors are still closely following the moves of the US central bank. As we have been reporting this week, Today's proceedings will be followed by the Jackson Hole Symposium, where Jerome Powell will speak on Friday and will give more clues about the expected rate cut in September. «The main thing for traders and investors is the Jackson Hole event, where the Fed chairman will give his speech. The content of the speech will provide many answers about the expected rate cut. (…) Money markets They give more than 75% chance to a 25 basis point rate cut in Septemberwhile Speculators have their eyes set on a 50 basis point cut«explains Naeem Aslam, chief investment officer at Zaye Capital Markets. Before this, the content of the Fed minutes became known today, which have confirmed market expectations and brought closer the possibility of a rate cut at the September meeting. «Most noted that if the data continued to come in roughly as expected, It would probably be appropriate to relax the policy at the next meeting.«, the text highlights. In addition, two major companies in the US retail distribution sector, Macy's and Targethave announced their second quarter results on Wednesday. Following the figures, Macy's shares plunge 12% due to below-expected sales and a lowering of annual guidance. Net sales fell 3.8% in the second quarter of its fiscal year 2025 to $4.94 billion, compared with an estimated $5.12 billion. On the other hand, Target soars 15% after the retail giant reports better-than-expected results. In its second fiscal quarter, the company has recorded a turnover of 25.5 billion dollars, which is 2.7% more than in the same period last year, exceeding expectations of 25.2 billion. Today it has also been published on the other side of the Atlantic The review of American job creation in the 12 months through March (Quarterly Census of Employment & Wages), which has revised downwards by 0.5% the job expansion since April of last year until the first quarter of 2024. Analysts at Oxford Economics They claim that «Recent job growth is likely overstated, something that will worry the Federal Reserve.as the labor market could be a bit more vulnerable.» «The Federal Reserve is trying to calibrate monetary policy amid a data mess, with low response rates to key labor market data and persistent problems with the post-pandemic seasonal adjustment process. For the central bank, Prudent risk management means starting to cut interest rates or risk pockets of weakness in the labor market turning into something worse.«, they conclude.
OTHER MARKETS
The euro is trading at $1.1123 (-0.06%). Oil is trading flat after the recent falls. Brent is at $77.28 and WTI at $73.16. Gold is down 0.22% now ($2,545) and silver is up 0.21% ($29.57). Bitcoin is around $60,000 ($59,236) and Ethereum is at $2,576. The yield on 10-year US bonds is down to 3.816%.