easing recent market anxieties.
The inflation rate increased 2.9% year-over-year in December, up from the 2.7% rate in November and in line with what economists were predicting. On a monthly basis, inflation rose 0.4%, a rate even higher than November’s 0.3%, marking the biggest one-month increase since March 2024.
The inflation report confirmed that market expectations for the Federal Reserve to make rate reductions in 2023 are becoming stronger. The likelihood of a rate decrease by June increased to 63%, up from 55% the previous day, and December futures now estimate a 50% chance of not one, but two rate cuts.
The Nasdaq 100 rose 1.9%, enabling us to follow in its lead with a similar gain, aided by strong performances in financial stocks. Smaller-cap stocks also picked up, rising 1.7%.
fourth-quarter 2024 earnings expectations.
Shares represented by the NYSE:XLF rose almost 2.2%, making it the best-performing sector of the S&P 500 and experiencing the greatest jump in more than two months.
The price of bonds increased, causing (NASDAQ:TLT) to rise by 1.3%.
The US dollar, as share UUP, experienced no significant change in value, but a gain in strength against the euro was balanced out by a decline in value versus the yen.
(USO) stock surged 2%, reaching a high of $80 a barrel on the day, after data showed a larger-than-expected decline in commercial crude oil inventories last week.
(NYSE:GLD), gained 0.5%.
This week’s Market Performance in US Major Indices and ETFs
Wednesday’s Stock Movers
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