US investors hit the brakes: September inflation weighs on Wall Street

US investors are putting on the brakes
September inflation weighs on Wall Street

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The US stock markets close just in the red. Inflation data is declining more slowly than expected, with core inflation actually accelerating slightly. Because the hurricane damage is less devastating, insurers are breathing a sigh of relief. Meanwhile, there is a bit of guesswork surrounding further interest rate cuts.

US equity investors have hit the brakes amid mixed economic signals. The Dow Jones Index the standard value closed slightly lower at 42,454 points. The broader one S&P 500 fell 0.2 percent to 5,780 points. The technology stock market index Nasdaq remained little changed at 18,282 positions. The much-noticed inflation rate fell to 2.4 percent in September after 2.5 percent in August. Economists had expected a sharper decline to 2.3 percent.

S&P 500 S&P 500
S&P 500 1.60

On the labor market, the number of initial applications for unemployment assistance rose surprisingly sharply. The data is “certainly a confusing message for markets,” said Cameron Dawson, investment strategist at NewEdge Wealth. “Whether that means that the Fed will be able to implement the full extent of their expected rate cuts is a good question.”

After the key rate was cut by 50 basis points last month to 4.75 to 5.0 percent, more and more stock market traders are expecting a cut of 25 basis points in November. Fed member Raphael Bostic, however, told the Wall Street Journal that he would feel comfortable not touching interest rates at the November meeting.

The volatility of recent inflation and employment data could justify this. Both that S&P 500 as well as that Dow had posted record closing prices on Wednesday after minutes from the Federal Reserve’s most recent meeting showed that a “significant majority” of policymakers voted in favor of the XL rate cut in September.

Hurricane damage less devastating

Investors also remained focused on the situation in Florida, where Hurricane “Milton” hit the center with a trail of destruction, but was significantly less severe. Shares of Florida-focused insurers such as Heritage Insurance, Universal Insurance and American Coastal Insurance rose sharply. According to Citi analyst James Shuck, estimates for insured losses are now at $50 billion, nowhere near as high as initially feared.

The storm had significantly increased demand for gasoline in Florida, with around a quarter of gas stations sold out. The prices for US oil WTI and North Sea oil Brent rose 3.3 percent to $75.66 and $79.12 per barrel respectively Oil price also due to the fear of an escalation of tensions between Israel and Iran. Investors fear that Israel could launch attacks on Iranian oil facilities, leading to supply shortages.

Tilray with deep red numbers

Tilray Tilray
Tilray 1.46

Were in the spotlight on the stock market Advanced Micro Devices. The chipmaker plans to begin mass production of a new version of its artificial intelligence chip in the fourth quarter of the year to strengthen its offering in a market dominated by Nvidia. AMD gave details about this at an event in San Francisco. AMD still lost almost four percent.

Red numbers scared away investors Tilray Brands. Shares of the cannabis company lost 2.5 percent. The company reported lower revenue and a higher loss for the first quarter compared to the previous quarter.

You can find everything else about today’s stock market events here.

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