(Boursier.com) — Wall Street continued to rise before market this Friday, with the S&P 500 gaining another 0.1%, the Dow Jones 0.1% and the Nasdaq 0.2%. Yesterday evening, the American stock market, boosted in particular by Micron, had already performed quite well, the day after well-received announcements from the Fed. 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. Powell, along with the Fed’s Michelle Bowman, Philip Jefferson, Michael Barr and Raphael Bostic, will speak today.
The Fed, let us recall, maintained its interest rates unchanged the day before yesterday between 5.25 and 5.50% on ‘fed funds’, the fifth consecutive monetary status quo. This week’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 on Wednesday, 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.
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The Fed considers inflation still high. Its new forecasts show that the consumer price index excluding food and energy is now expected to rise 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.
There will be no notable economic statistics this Friday on Wall Street. Yesterday, US weekly jobless claims for the week ended March 16 stood at 210,000, compared to a FactSet consensus of 214,500. The Philadelphia Fed’s manufacturing index for March came in at +3.2, compared to a consensus of -3 measured by FactSet… The preliminary US composite PMI index for March 2024 stood at 52.2, compared to a consensus of 52.
The manufacturing index was 52.5 against 51.8 consensus, while the services indicator stood at 51.7 against 52 market consensus…
Resales of existing homes in the United States for the month of February 2024, measured by the National Association of Realtors, stood at 4.38 million units against 3.93 million consensus. This represents an increase of 9.5% compared to the month of January!
The Conference Board’s leading indicators index for the month of February 2024 surprised with a slight increase of 0.1% compared to the previous month, against a market consensus of -0.2% and a decrease of 0.4%. a month ago.
Nike, FedEx And Lululemon published their quarterly accounts last night. Nike was coldly received. The stock lost 6% before market this Friday. Lululemon falls more than 12% in pre-session. On the other hand, FedEx climbs more than 12% for the hour before market…