Wall Street Softens as Investors Await Key Inflation Data

Introduction

On September 12, Wall Street softened and the dollar rebounded as investors looked ahead to key inflation data and further clues regarding the duration of the U.S. Federal Reserve’s restrictive monetary policy. This article discusses the current market sentiment and the upcoming events that are influencing investors’ decisions.

Oracle Corp’s Weaker Forecast

Oracle Corp’s weaker-than-expected current quarter revenue forecast has weighed on market sentiment. This hints at a broader softening of demand, which has contributed to the negative territory of all three major U.S. stock indexes at the start of the session.

Consumer Price Index (CPI) Report

The crucial Consumer Price Index (CPI) report is expected on Wednesday. This report will provide further insight into the slow, downward path of inflation and offer clarity regarding the direction of key interest rates. Investors are eagerly awaiting this report to make informed decisions.

Upcoming Federal Reserve Policy Meeting

In one week, the Federal Reserve is due to convene its two-day policy meeting. It is widely expected that the Fed will maintain current key interest rates. Investors are closely monitoring this meeting to understand the Fed’s stance on policy and its impact on the market.

Market Participants’ Concerns

Market participants are currently focused on inflation, the labor market, prices, and consumer demand. These factors are crucial in determining the Fed’s policy decisions. Investors are waiting to see how data evolves before making any significant moves.

Market Performance

• The Dow Jones Industrial Average fell 65.05 points, or 0.19%, to 34,598.67
• The S&P 500 lost 18.73 points, or 0.42%, to 4,468.73
• The Nasdaq Composite dropped 86.98 points, or 0.62%, to 13,830.91

Global Market Performance

European shares and MSCI’s gauge of stocks across the globe were slightly lower. Emerging market stocks also experienced losses. However, Japan’s Nikkei rose 0.95%.

Currency Market

The dollar regained some ground against a basket of world currencies. The yen weakened against the greenback after comments from Japan’s top banker suggested a possible end to its negative interest rate policy.

Treasury Yields

U.S. Treasury yields were range-bound ahead of the Labor Department’s CPI report. Benchmark 10-year notes and the 30-year bond experienced slight falls in price.

Oil and Gold Prices

Oil prices surged due to a tighter supply outlook and a positive global demand outlook from OPEC. Gold prices, on the other hand, retreated to a more than two-week low, influenced by the strengthening greenback.

Conclusion

Investors are currently in a holding pattern as they await key inflation data and the Federal Reserve’s policy meeting. The market sentiment is influenced by factors such as demand softening, inflation, and interest rates. It is crucial for investors to stay informed and monitor the evolving data before making any significant investment decisions.

Reporting by Stephen Culp; Editing by Sharon Singleton

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