Stocks Tread Water as Focus Shifts to Fed Decision
On Friday, U.S. stocks showed little movement, following a strong performance teh previous day. The Dow Jones Industrial Average dipped slightly by 0.14%, or 60 points. Similarly,the S&P 500 fell 0.08%, while the nasdaq Composite remained nearly flat.
Despite minor losses, all major indexes stayed close to record highs, suggesting a positive week for U.S. stocks.The main event now is the upcoming Federal Reserve meeting.
The Fed’s September meeting is highly anticipated. Traders expect the central bank to announce a 25% interest rate cut, following earlier economic signals.Despite an August consumer price index increase of 0.4%, which exceeded expectations, core CPI met forecasts. This trend supports the notion that a fed rate cut could happen.
Analysts predict further cuts by the end of the year due to sluggish job markets and ongoing inflation issues. However,over 90% of investors believe a cut is likely.
Mohamed El-Erian, president of Queen’s College, Cambridge and Allianz advisor, notes that jobless claims rose more than expected. He believes this highlights a greater risk of labor market weakness compared to inflation above the fed’s target.
While the stock market remains optimistic, the crypto market also sees growth. Bitcoin climbs above $114,000, and altcoins like Solana and XRP are gaining momentum.
Investors remain hopeful for a favorable Fed decision, as it could shape future market trends.
