Xinhua Finance New York, January 10 (Reporter Liu Yanan) As the market remains optimistic about the trend of inflation in the United States, the three major stock indexes in New York opened higher on the 10th, consolidated in a narrow range in the morning, and continued to rise in the afternoon.
As of the day, the Dow Jones Industrial Average was 170 higher than the previous session57 points, closed at 3769573 points, an increase of 045%；S&P 500 Index 2695 points, closed at 478345 points, an increase of 057%；Nasdaq Composite Index**11194 points, closing at 1496965 points, an increase of 075%。
In terms of sectors, seven of the 11 major sectors of the S&P 500 index rose and four fell. The communication services sector and the technology sector each ended with 117% and 100% gains led the gains, with the energy sector and the materials sector each with 101% and 0A 17% decline led the decline.
The U.S. Department of Labor will release the U.S. consumer ** index for December 2023 on the morning of the 11th, and the market consensus expects the core consumer ** index to rise lower.
Vladimir Zernov, a market analyst at FXempire, said on the day that the S&P 500 moved higher as traders waited for the release of the consumer ** index on the 11th. Traders remain optimistic and expect the Fed to start cutting interest rates in March. US Treasury yields, although higher on the day, did not put any pressure on major stock indices on the day.
New York Fed President John Williams said in a speech on the afternoon of the 10th that under the baseline scenario, the current restrictive monetary policy stance will continue to restore balance and achieve the long-term inflation target of 2%.
"I anticipate that in order to fully achieve our goals, we will need to maintain a restrictive policy stance and only ease policy restrictions if we are confident that inflation is continuing to move towards 2%," Williams said. ”
Williams believes that the Fed remains at risk in both directions, either by withdrawing its tightening monetary policy too quickly and causing inflation to rise, or by holding it too long and hurting the economy.
HSBC said that while it remains strategically constructive, it expects a pause. In the past 3 months, the world** has overshot by 10% compared to HSBC's machine learning model**. As markets increasingly price in perfect expectations, valuations could become vulnerable to any hawkish Fed messages or an inflation surprise higher.
Phillip Colmar, a partner in charge of global strategy at market research firm MRB Partners, said that ** is in the calm before the Fed cuts interest rates, and the market is already pricing in expectations of a Fed rate cut at the end of 2023.
Now, Colmar said, while the market is fairly calm, he doesn't think it will be the case throughout the year. **Pricing fully reflects the expectation of a "just right" economic soft landing. The next step may not be a "landing",* volatility will rise again, and the market will not rise as it did at the end of 2023.
Quincy Krosby, chief global strategist at LPL Financial in the United States, said that the market is now in a tug-of-war, with one side believing that economic growth is slowing but resilient, and the other side believing that the economy will face more difficulties**.
Editor: Tan Rui.
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