{"id":8725,"date":"2024-07-12T07:32:19","date_gmt":"2024-07-12T07:32:19","guid":{"rendered":"https:\/\/tradersontrend.com\/2024\/07\/12\/cooling-inflation-sparks-market-gains-and-fed-rate-cut-hopes\/"},"modified":"2024-07-12T07:32:19","modified_gmt":"2024-07-12T07:32:19","slug":"cooling-inflation-sparks-market-gains-and-fed-rate-cut-hopes","status":"publish","type":"post","link":"https:\/\/tradersontrend.com\/h\/2024\/07\/12\/cooling-inflation-sparks-market-gains-and-fed-rate-cut-hopes\/","title":{"rendered":"Cooling Inflation Sparks Market Gains and Fed Rate Cut Hopes"},"content":{"rendered":"<p>US stocks inched higher on Thursday following the June consumer price index (CPI) report, which revealed a more significant cooling in inflation than analysts had anticipated.<\/p>\n<p>The S&amp;P 500 and Nasdaq are nearing record highs. The 10-year Treasury yield dropped nine basis points to 4.181%, and the two-year note fell 14 basis points to 4.49%.<\/p>\n<p>Last month, CPI rose by 3% annually, below the expected 3.1%. On a monthly basis, CPI decreased by 0.1%, defying predictions of a 0.1% rise.<\/p>\n<p>Falling gas prices contributed to the overall reading, while high housing costs showed signs of slowing, marking their slowest growth rate since 2022.<\/p>\n<p>This reading may pave the way for the Federal Reserve to start reducing interest rates. Odds of a rate cut at this month&#8217;s policy meeting have increased slightly following the CPI report, though a September cut remains the most likely. According to the CME FedWatch Tool, investors see an 80% chance of a rate cut in September, with growing odds for another cut in November or December.<\/p>\n<p>&#8220;The latest inflation numbers put us firmly on the path for a September Fed rate cut,&#8221; said Seema Shah, Chief Global Strategist at Principal Asset Management. &#8220;The smallest gain in core CPI since 2021 surely gives the Fed confidence that Q1&#8217;s hot CPI readings were a bump in the road and builds momentum for multiple rate cuts this year.&#8221;<\/p>\n<p><strong>US Indexes Performance Shortly After the 9:30 a.m. Opening Bell on Wednesday:<\/strong><\/p>\n<ul>\n<li><strong>S&amp;P 500:<\/strong> 5,640.36, up 0.1%<\/li>\n<li><strong>Dow Jones Industrial Average:<\/strong> 39,789.77, up 0.2% (68 points)<\/li>\n<li><strong>Nasdaq Composite:<\/strong> 18,646.76, unchanged<\/li>\n<\/ul>\n<p><strong>Other Notable Events:<\/strong><\/p>\n<ul>\n<li>Congress is making another attempt to ban stock trading by its members and their families.<\/li>\n<li>Goldman Sachs outlines the potential impact of a Trump win on the stock market.<\/li>\n<li>PIMCO warns that credit markets are currently too risky and vulnerable to shocks for investors.<\/li>\n<\/ul>\n<p><strong>Commodities, Bonds, and Crypto:<\/strong><\/p>\n<ul>\n<li><strong>Oil:<\/strong> West Texas Intermediate crude rose 0.2% to $82.30 a barrel. Brent crude increased 0.2% to $85.26 a barrel.<\/li>\n<li><strong>Gold:<\/strong> Rose 1.3% to $2,411 per ounce.<\/li>\n<li><strong>10-year Treasury Yield:<\/strong> Fell nine basis points to 4.181%.<\/li>\n<li><strong>Bitcoin:<\/strong> Climbed 1.3% to $58,014.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>US stocks inched higher on Thursday following the June consumer price index (CPI) report, which revealed a more significant cooling in inflation than analysts had anticipated. The S&amp;P 500 and Nasdaq are nearing record highs. The 10-year Treasury yield dropped nine basis points to 4.181%, and the two-year note fell 14 basis points to 4.49%&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":8726,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[680],"tags":[],"class_list":["post-8725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inside-the-tape"],"_links":{"self":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/8725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/comments?post=8725"}],"version-history":[{"count":0,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/8725\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media\/8726"}],"wp:attachment":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media?parent=8725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/categories?post=8725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/tags?post=8725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}