US stocks ended the week lower as investors digested mixed inflation data.
While the Consumer Price Index report for July came in lower than expected, the Producer Price Index was higher than economists’ estimates.
The mixed data will be a major input into the Fed’s upcoming interest rate decision.
US stocks were mixed on Friday and ended the week mostly lower as investors digested inflation data, which will be a key input into the Federal Reserve’s next interest rate decision in September.
The consumer price index for July came in below economists’ estimates and showed a continued slowdown in inflation, while the producer price index for July came in above economists’ estimates, although it indicated that most prices are declining from last year’s levels.
Despite the conflicting data, investors still expect the Federal Reserve to pause interest rate hikes at the September FOMC meeting, according to CME FedWatch. But this does not mean that the rate hike is over, as the Fed is still waiting for the August CPI and jobs report to inform its decision.
“The increase in wholesale rates serves as a reminder that the data-driven Federal Reserve is not prepared to declare victory in its campaign to suppress inflation,” said Quincy Crosby, chief global strategist at LPL. “Today’s report from the Fed’s hawkish wing provides more ammunition to call for another rate hike before the Fed is convinced it has reached its final rate.”
Here’s where US indices stand shortly at the 4:00 PM closing bell on Friday:
Here’s what else is happening today:
In commodities, bonds and cryptocurrencies:
gold It fell by 0.20%, to $1,945.00 an ounce.
The yield on the 10-year Treasury jumped six basis points to 4.17%.
bitcoin It fell by 0.23%, to $29,360.
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