Wall Street closes in the green, bets on a pause in rate hikes

The NY stock market closed June 12 with widespread gains and the Dow Jones Industrials, Its main indicator gained 0.43% supported by a new drop in inflation in the US during May, which makes the market think that the Federal Reserve (Fed) will opt this week to leave interest rates unchanged.

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Upon completion of operations in New York, the Dow Jones stood at 34,212 pointswhile the selective S&P 500 advanced 0.69%, up to 4,369.01 units.

The composite index of the Nasdaq market, where the main technology companies are listed, rose 0.83% and ended at 13,575 integers. The markets reacted like this after learning that the annual rate of inflation in the US fell in May for the eleventh consecutive month and stood at 4%, nine tenths less than in April.

(See: Wall Street ended in green pushed by the technology sector)

The drop is the second steepest decline since the gauge began declining in July 2022 and, at 4%, is the lowest year-on-year figure since March 2021.

With those figures in hand, investors bet that the Fed, which began a meeting of its Federal Open Market Committee on June 12will choose to pause rate hikes, a decision that will be announced tomorrow.

(See: Wall Street closes on mixed ground and the Dow Jones rises 0.3%)

Many analysts expect the US central bank to avoid touching the price of money this month, but They believe that it will advance its intention to approve new increases for latersince inflation continues far from its target figure of 2%.

All sectors of Wall Street closed higher with the sole exception of public utility companies, which lost a slight 0.06%.

(See: Wall Street closed in the green and the Dow Jones rose 2.12%)

EFE