Wall Street posts gains this Friday after the mixed sign on Thursday, in a session in which the technological values again led the falls. On this day, investors will discount the June PCE consumption deflator, the most followed price variable by the Federal Reserve (Fed).
The data known this Friday have worsened expectations, given that The overall rate has fallen by one-tenth, to 2.5% year-on-yearwhile the consensus anticipated a decline to 2.4%. For its part, the underlying variable has remained at 2.6%compared to forecasts of a relaxation to 2.5%. The data will be decisive for the evolution of the Fed's monetary policywhich will hold a new conclave on July 30 and 31, although it is expected that it will not touch rates at this meeting. On the other hand, the market is discounting with an 88% probability that The first cut will come in SeptemberIn this sense, analysts of Oxford Economics They assure that «the moderate increase in prices will give the Federal Reserve greater confidence that inflation is on track to moderate toward its 2% target.» «While we do not expect the news to be as good in the coming months, we believe that It would take a nasty upward surprise in inflation between now and September to derail the Fed from cutting rates at that meeting,» they anticipate.
A DISAPPOINTING WEEK FOR TECHNOLOGY
The last sessions have been marked by the strong technology sales and those companies associated with the artificial intelligence (AI)reflection of the market rotation towards more cyclical sectors. All this in a context in which, according to Ozkardeskaya, it has been seen that the fall of the S&P 500 and the Nasdaq has been counterbalanced by a increase in economically sensitive sectors for about two weeks now. «We went from 'the Fed could hardly cut in September' to 'it would be a mistake not to cut in July or September' in the blink of an eye. Everything seems to have turned upside down since last week. Big Tech Stocks which have been rising steadily since early 2023 are severely affected by rapid capital outflowsSince the Concerns over spending on artificial intelligence and the realization that it may take time to see the benefits of this massive spending pushes investors to take a part of their profits and leave,» says the expert. Losses that worsened after learning about the Disappointing quarterly results from Alphabet and Tesla. Therefore, all eyes are already on the results that other 'big tech' companies will release next week, such as Microsoft, Meta, Amazon or Apple.
OTHER MARKETS
In other markets, oil West Texas down 0.98% ($77.52) and the Brent yields 1% ($81.54). For its part, the euro It appreciates 0.14% ($1.0856), and the ounce of gold earns 0.72% ($2,370). In addition, the 10-year US bond yield relaxes to 4.207% and the bitcoin rises by 4% ($67,290).