After last week's Fed rate hike and strong jobs report traders eye CPI data this Thursday
U.S. stock futures rose even as short-term Treasury yields hovered near their highest since 2007 after last week’s Fed rate hike, a relatively robust jobs report and ahead of important inflation data.
How are stock index futures trading On Friday, the Dow Jones Industrial Average DJIA rose 402 points, or 1.26%, to 32403, the S&P 500 SPX increased 51 points, or 1.36%, to 3771, and the Nasdaq Composite COMP gained 132 points, or 1.28%, to 10475. After last Wednesday’s 75 basis point hike in borrowing costs by the Fed, and Friday’s stronger than expected jobs report, Tom Barkin, Richmond Fed President, told CNBC that interest rates would rise at a slower pace but for longer and with a higher top rate for the cycle.
“Recapping last week now and the dovish pivot trade pivoted one way and the other across the week but ultimately Powell’s FOMC press conference put the hawks back in the ascendency,” said Jim Reid, strategist at Deutsche Bank. Reid added that although his base case was that 2023 would be “a bad year for the global economy and risk, in every 12-month period post mid-terms over the last century, the equity market has always gone up with the inflexion point being immediately after mid-terms”.
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