The US stock market rose for the second consecutive day amid optimism that negotiations over raising the nation’s debt ceiling can be resolved in the next few days. In economic data release, Initial Jobless Claims fell to 242,000 (lower than expectations and the previous week), a sign of a tight labor market.
US stocks market closed lower on Tuesday (16/05/23), after a disappointing forecast from Home Depot, and several economic data such as US Retail Sales (Apr.) pointed to softer consumer spending, while uncertainty about interest rates and debt limit negotiations weighed on the market sentiment.
Wall Street indexes closed lower on Tuesday (16/05/23), after a disappointing forecast from Home Depot, and several economic data such as US Retail Sales (Apr.) pointed to softer consumer spending, while uncertainty about interest rates and debt limit negotiations weighed on the market sentiment.
US stock markets slowly moved into positive territory, and government bond yields also crept up on optimism that the officials will be able to reach an agreement regarding the US debt ceiling issue.
The S&P 500 and the Dow Jones ended with gains of 0.3% and 0.14% respectively, after the release of manufacturing activity data in New York further confirmed concerns about a slowing US economy that could help bring down the inflation amid ongoing debt ceiling negotiations. The NY Empire State Manufacturing Index (May), tumbled to a reading of -31.8, against expectations of -3.75.
The world has entered a mild recession phase, meaning that Fed’s “medicine” is (finally) working. The looming threat of recession in the US as well as China’s weak economy made global financial market sentiment rather gloomy affecting Indonesia’s capital market with 1.18% decline during last week’s trading; as well as foreign sell-offs at IDR 1.1trillion (all markets).
The US Dollar gained 1.4% over the Euro, Yen and other currencies (the biggest gain since September); however, a number of world stock markets closed down on Friday (12/05/23), as US Consumer Sentiment (May) data fell to a 6-month low.
US stocks closed in negative territory for the fifth consecutive day o Friday (12/05/23), led by weaker mega cap shares as US Consumer Sentiment (May) data plunged to its lowest point in six months.US stock markets closed in negative territory for the 5th consecutive day on Friday (12/05/23), dragged down by mega caps as US Consumer Sentiment (May) data plunged to its lowest point in 6 months.
Investors expect the Federal Reserve will soon stop the upward trend of US interest rates as data emerged that Inflation managed to flatten and jobless claims rose. The US PPI (Apr.) rose 0.2% MoM, lower than the 0.3% economists had expected, and slowed to 3.2% YoY from 3.4% in the previous month.
