Stocks Rise as Treasury Secretary Yellen Expresses Confidence in US Economy
Positive Indicators Point Towards Economic Stability
- Treasury Secretary Janet Yellen is optimistic about the stability of the US economy.
- Recent indicators suggest a controlled slowdown in inflation and positive employment trends.
- Core inflation levels remain steady, according to a note from Morgan Stanley.
- No significant rise in layoffs has been observed in the labor market.
- Morgan Stanley predicts the Federal Reserve will maintain its current stance.
- The federal funds rate is expected to plateau at around 5.375%.
Stocks Open Higher on Monday Morning
- The Nasdaq 100, S&P 500, and Dow Jones Industrial Average are all up in early trading.
- The Nasdaq 100 is up by 0.93%, the S&P 500 by 0.66%, and the Dow Jones by 0.5%.
- These gains come after positive remarks from Treasury Secretary Yellen.
Key Inflation Reports Expected This Week
- Traders are anticipating the release of the Consumer Price Index (CPI) and Producer Price Index (PPI) data.
- The Federal Reserve will consider these reports in its upcoming interest rate decision.
- Retail Sales data, Consumer Sentiment Index reading, and weekly Initial Jobless Claims will also be released this week.
Upcoming Earnings and Events
- Oracle will report its Q1FY24 results today after the bell.
- Adobe will report its Q3FY23 results on September 14.
- Apple is set to unveil the iPhone 15 at an event on September 12.
- J.M. Smucker is finalizing an acquisition deal with Hostess Brands.
- Alibaba Group shares are down following the abrupt exit of Daniel Zhang from its Cloud Business.
European Indices Trading in the Green
- European markets are anticipating important data releases this week.
- The European Central Bank is expected to disclose its monetary policy decision on September 14.
- A 25-basis point hike is largely expected.
Asia-Pacific Markets End Mixed
- China’s CPI grew 0.1% year-over-year in August, lower than expected.
- Hong Kong’s Hang Seng index ended lower, while China’s Shanghai Composite and Shenzhen Component indices ended higher.
- Japan’s Nikkei ended down, while the Topix index closed near the flatline.
Last updated: 9:30AM EST
First published: 4:09AM EST
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Disclosure: This article contains information provided by TipRanks.