Wall Street indexes close up; data keeps smaller Fed rate cut in view

Wall Street indexes close up; data keeps smaller Fed rate cut in view

By Sinéad Carew and Shashwat Chauhan

Thu September 12, 2024 7:10 PM

All three indexes started the day in the red, the Dow down some 200 points, before getting a big boost right at the noon hour. Oddly enough, PPI data came in even higher than yesterday’s CPI, double the estimate, though still essentially flat (0.2% vs 0.1% forecast) but, even though the CPI sent everyone into an initial panic over the quashing of a ½ point rate cut and looming recession, today’s report did the opposite, assuring the market of a ¼ point cut and a soft landing.

There’s really no second-guessing this market. Today’s expert is saying, “As long as investors see that interest rate cut and a path forward for interest rate cuts, they’re excited about prospects in the stock market and especially the growthier sections.”  Today’s odds are now about 70:30 for a ¼ vs ½ point cut. Bargain hunting was also cited as a reason for the big boost.  Volume came in at 10.58 billion, below the average of 10.82 billion. 

DJ: 40,861.71  +124.75      NAS: 17,395.53  +369.65      S&P: 5,554.13  +58.61        9/11

DJ: 41,096.77  +235.06      NAS: 17,569.68  +174.15      S&P: 5,595.76  +41.63        9/12

Thu 9-12-24 7:10 pm Wall Street indexes close up; data keeps smaller Fed rate cut in view | Reuters