Wall Street continues to rise before market trading this Thursday, with the S&P 500 gaining another 0.3%, the Dow Jones 0.2% and the Nasdaq 0.7%…
(Boursier.com) — Wall Street continued to rise before market trading this Thursday, with the S&P 500 gaining another 0.3%, the Dow Jones 0.2% and the Nasdaq 0.7%. Yesterday evening, the Nasdaq Composite had already gained 1.25% and the Dow 1.03%, following the Fed’s announcements. The American central bank seemed to maintain its stance regarding further rate cuts this year, despite recent data that was a little less positive than expected regarding inflation. Jerome Powell, for his part, judged that despite recent statistics, the narrative relating to a gradual decline in inflation had not changed.
The Fed yesterday kept its interest rates unchanged between 5.25 and 5.50% on ‘fed funds’, the fifth consecutive monetary status quo. Yesterday’s announcements still call for three quarter-point rate cuts later this year. For now, rates remain at the highest since 2001. The Fed does not expect it will be appropriate to narrow the target range until it gains greater confidence in a sustainable return inflation towards 2%. Powell clarified during his press conference that the latest inflation figures had therefore not called into question the scenario of continued easing of prices in the United States. However, the central bank does not consider the battle won.
Nine FOMC officials who presented their forecasts on Wednesday estimate that the central bank will cut rates three times this year. Five officials judge that two reductions will be enough. One participant forecasts a rate cut of 100 basis points over the year. Two members of the FOMC, on the other hand, are considering a single rate cut, while the last two are counting… on a status quo all year.
The Fed considers inflation still high. Its new forecasts show that the consumer price index excluding food and energy is now expected to increase by 2.6% this year compared to 2.4% previously. Adjusted inflation should fall to 2.2% in 2025 and 2% in 2026… American growth this year is expected at 2.1%, compared to 1.4% forecast in December. This economic expansion is expected at 2% in 2025 and 2026. The unemployment rate should be at 4% at the end of the year according to the Fed, compared to 4.1% previously forecast in December and 3.9% in February. . The unemployment rate is forecast at 4.1% in 2025 and 4% in 2026.
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On the economic front in the United States this Thursday, operators will follow the weekly American unemployment claims for the week ended March 16 (1:30 p.m., consensus 214,500), the Philadelphia Fed manufacturing index for the month of March (1:30 p.m., consensus -3), the current account balance for the fourth quarter (also 1:30 p.m., consensus -205 billion according to FactSet), as well as the American composite flash PMI index for the month of March (2:45 p.m., consensus 52.2 and 52 in services ), February existing home resales (3 p.m., consensus 3.93 million units) and the Conference Board Leading Indicator Index (same time, consensus -0.2%).
Accenture, Nike, FedEx, Lululemon, Darden Restaurants And FactSetare also publishing their quarterly accounts this Thursday. Micron, KB Home And Chewy announced last night.
Finally, on Friday, investors will follow interventions by Jerome Powell, Philip Jefferson and Raphael Bostic of the Fed.