In spite of lower bond yields and a busy week of economic data points, stocks witnessed moderate gains on Monday as investors tried to recover the month’s losses.
A higher-for-longer interest rate regime was reiterated at last week’s central bank symposium, but stocks rose as the 10-year Treasury yield dropped from August highs above 4.3%. The Federal Reserve would “proceed carefully” with additional rate increases, Chairman Jerome Powell said, and could remain aggressive if inflation persists.
Markets anticipate the Fed to hold rates constant at its policy meeting next month, but they also anticipate a quarter-point rate increase in November by the Fed.
Investors will learn more about the possible direction of monetary policy this week thanks to upcoming inflation statistics. The Federal Reserve’s favoured inflation indicator, the Personal Consumer Expenditures Price Index, will be updated on Thursday. The August nonfarm payrolls report will be released on Friday.
China’s attempts to support its markets resulted in a brief recovery, only to fail once more.
Here are two things the Fed needs to do, according to Jeremy Siegel, for the stock market to increase by an additional 9% before the year is over.
According to Zillow, this year’s increase in home market prices might be 6%.
Due to potential further declines in the real estate market, new home prices in China may not increase at all this year.
This year, according to analysts, the value of the Chinese offshore yuan will reach a record low.
A barrel of crude oil increased by 0.36% to $80.12. The worldwide benchmark, Brent, decreased slightly to $84.47 per barrel.
An ounce of gold increased by 0.4% to $1,947.70.
The 10-year Treasury’s yield dropped 3.7 basis points to 4.202%.
To $25.993.9, Bitcoin fell by 0.37%.