A turnaround for the markets
The American stock markets closed the week with a negative trend, marking a reversal compared to the recent rally that followed the elections. This change of course took many investors by surprise, who had bet on continued growth. The Dow Jones Index lost 196 points, equal to a decrease of 0.45%, while the S&P 500 fell by 39.50 points, corresponding to a decline of 0.66%. Finally, the Nasdaq recorded a decline of 240.25 points, equal
to -1.14%.
Jerome Powell’s statements
The president of the Federal Reserve, Jerome Powell, recently stated that there is no urgency to lower interest rates, thanks to the strength of the US economy. This statement had an immediate impact on the markets, affecting investor expectations. The Fed, in fact, is closely monitoring the trend in inflation, which continues to represent a concern. Producer prices showed an annual increase from 1.9% to 2.4% in October, exceeding forecasts that indicated a
rise of 2.3%.
Inflation and retail sales
In addition, the consumer price inflation figure increased, marking an increase from 2.4% to 2.6% for the first time since March. This scenario has led to greater caution among investors, who fear that inflation may continue to rise, affecting the Fed’s interest rate decisions. The price of WTI oil at Nymex also fell by 0.98%, to 68.03 dollars per barrel.
Retail sales are on the rise
Despite the uncertain climate, retail sales in the United States registered an increase of 0.4% in October, reaching 718.9 billion dollars. This result exceeded expectations, which were +0.3%, consolidating an increase of 2.8% compared to last year. Excluding vehicles and fuels, growth was 0.1 percent. This positive figure could provide some support to the markets, but concern about inflation remains high.