Wednesday, December 6, 2023

Wall Street closes on weak economic data and Australia’s central bank

Por Ankika Biswas, Bansari Mayur Kamdar y Herbert Lash

October 4 – Wall Street rose for the second day in a row on Tuesday, as weak US economic data and a lower-than-expected interest rate hike from the Australian central bank raised hopes that the Federal Reserve could ease its aggressive rate hikes.

* While demand for jobs remains strong, US job openings fell in August to their biggest drop in nearly two and a half years, a sign that the Federal Reserve’s mission to control inflation is succeeding in curbing the economy. Had been.

* Earlier, the Reserve Bank of Australia surprised the markets by raising interest rates by 25 basis points less than expected. Its interest rate rose to a nine-year high after six hikes, a tight cycle that has also engulfed other central banks.

* The Reserve Bank of Australia is the first major central bank to acknowledge that it is time to slow down after aggressively raising rates this year, said Anthony Saglimbine, chief market strategist at Ameriprise Financial.

* “Hopefully the Fed will say the same thing sometime in the fourth quarter. Don’t stop raising interest rates, just slow down,” he said. “That’s what the market awaits beneath the surface.”

* Still, Fed Governor Philip Jefferson said inflation is the most serious problem facing the US central bank and that it “could take some time” to be addressed.

* San Francisco Fed Chair Mary Daly said the central bank needed to hike rates more.

* Rate-sensitive tech stocks rose as the benchmark 10-year Treasury yield fell for the second consecutive day following a surprise move in jobs data and Australia.

* The Dow Jones Industrial Average and the S&P 500 posted their biggest two-day gains since April 2020.

* Billionaire Elon Musk has proposed to go ahead with his original $54.20 bid to take Twitter Inc private, two sources familiar with the matter said on Tuesday, sparking a surge in the social media firm’s shares. ,

* Based on preliminary data, the S&P 500 rose 112.84 points, or 3.09%, to 3,791.27, while the Nasdaq Composite gained 360.97 points, or 3.34%, to 11,174.20. The Dow Jones Industrial Average rose 823.27 points, or 2.81%, to 30,314.16.

World Nation News Desk
World Nation News Desk
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