Investors will get more details Thursday on how consumers are reacting to high prices when the government releases a report on retail sales for August. The difference between a total return index and a price return index. If the DJIA rises by 10 points comparing to yesterday, it means that the cost of purchasing the 30 stocks in the index today is 10 higher than purchasing those. On Wednesday, the government will release its report on wholesale prices, giving Wall Street a picture of how inflation impacted businesses in August. The Dow Jones Industrial Average (DJIA) is one of the most quoted stock market. Overall, economists forecast consumer prices rose 8.1 percent in August, compared with a year ago, down from 8.5 percent in July, according to data provider FactSet. Prices for other items, particularly food, are likely to keep rising quickly. The most important inflation report this week comes on Tuesday and the government is expected to report that price increases slowed in August compared with a year ago, largely because of a steady drop in the cost of gas. It has already raised rates four times this year and markets expect it to deliver another jumbo-sized increase of three-quarters of a percentage point at its meeting next week.įed officials, including Chair Jerome Powell, have all reaffirmed the central bank’s determination in raising rates until inflation is under control. Investors are hoping that any sign of easing inflation might signal to the Fed that it can also ease up on rate hikes. The concerns have created a volatile market over the past few months. Wall Street is concerned that the central bank could hit the brakes too hard on the economy and throw it into a recession. The main focus is on the Federal Reserve, which has been raising interest rates in an effort to tame inflation. month marks the 125th anniversary of the Dow Jones Industrial Average, a stock-value metric for 30. Investors face a busy week of inflation updates as they continue to closely watch how consumers and businesses cope with the worst inflation in four decades. Stock market values have risen more than home prices. The two-year Treasury yield, which tends to track expectations for actions by the Federal Reserve, fell to 3.54 percent from 3.56 percent. The yield on the 10-year Treasury, which influences interest rates on mortgages and other loans, slipped to 3.28 from 3.32 percent late Friday.
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