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08/07/24
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US Stocks Inch Up Ahead of CPI Data, Powell’s Testimony
On Monday, U.S. stocks inched up and retained a positive tone before key inflation data and testimony by Federal Reserve Chair Jerome Powell to Congress this week.
The NASDAQ Composite rose 30 points or 0.2%, the S&P 500 climbed 12 points or 0.2%, and the Dow Jones Industrial Average rose 216 points, or 0.6%.
The sentiment is generally positive, and on Friday the Nasdaq Composite and S&P 500 reached all-time highs and ended at record closing highs, as weaker-than-expected nonfarm payrolls data increased optimism that the Fed will start reducing interest rates by Sept.
Powell will on Tuesday and Wednesday testify before the Senate and the House with most of the testimony likely to focus on monetary policy.
Last week, Powell indicated that although the Fed had made progress toward pushing inflation lower, policymakers were not yet confident enough to start cutting rates. The minutes of the Fed’s meeting in June also supported this notion.
Last week’s softer-than-expected labor data fueled hopes that the labor market was easing, giving the Fed more reason to start cutting interest rates.
Inflation will likely be the Fed’s main point of consideration in cutting interest rates. The CPI is due on Thursday, and will likely increase by 0.1% m/m and 3.1% y/y.
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