Wall Street opens in the green and the Dow Jones rises 1.30%

Wall Street opens in the green and the Dow Jones rises 1.30%

Wall Street opened this Wednesday in green and its main indicator, the Dow Jones Industrials, gained 1.30%, after it was announced that inflation in the United States took a breather in July by placing its interannual rate at 8.5%, 6 tenths less than in June.

Ten minutes after the floor opened, the Dow Jones added 426.29 points, to 33,200.70, while the selective S&P 500 gained 1.47% or 60.41 units, to 4,182.88.

The Nasdaq composite market index, which brings together the main technology companies, rose 1.86% or 232.91 integers, to 12,726.84.

According to data published this Wednesday by the Bureau of Labor Statistics (BLS), compared to the previous month, consumer prices remained stable (0%) thanks mainly to the drop in gasoline prices, which was 7.7% in July.

The drop in the inflation rate —which in June had reached its highest level in forty years— gives a small respite to the US economy, which at the end of July entered what experts consider a technical recession by chaining two quarters of drop in Gross Domestic Product (GDP).

A diagnosis that, however, is not shared by the US government, which does not believe that the country is in a recession scenario given the robustness of its economy, especially its labor market, with an unemployment rate of 3.5%. .

In any case, high inflation continues to be the main concern of the Government and also of the Federal Reserve (Fed), which on July 27 raised interest rates again, which are now in a range between 2, 25% and 2.5%.

The central bank is scheduled to raise interest rates again at its September meeting.

“The slowdown in the Consumer Price Index for July is probably a big relief for the Federal Reserve, especially since the Fed insisted that inflation was transitory, which was incorrect. If we continue to see declining inflation figures, the Federal Reserve could start to slow down the pace of monetary tightening,” said Nancy Davis, founder of Quadratic Capital Management, in statements collected by Globe Live Media.

All sectors woke up in green and the biggest gains were for non-essential goods (2.56%), raw materials (2.23%) and communications (2.13%).

Earnings also dominated among all 30 Dow Jones listed companies with the top performers being Salesforce (2.95%), Dow (2.77%) and JP Morgan (2.7%).

Elsewhere, Texas oil fell as low as $89.85 a barrel, the 10-year Treasury yield fell to 2.726%, gold fell to $1,810.60 an ounce and the dollar lost ground against the euro, with an exchange rate of 1,031.

Samuel Edwards
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