On September 11th 2023, US stocks closed higher and the dollar weakened, as investors awaited the upcoming inflation data on September 13th 2023. The NASDAQ, primarily composed of tech giants, led the equities rally by 1.1%, mainly due to stocks such as Tesla and amazon. The S&P 500 and DJI also rose by 0.7% and 0.3%, respectively. This pleasant trading day serves as a prelude to vital economic data to be released on the 13th of September, the CPI. Forecasted to show rises in inflation mainly accredited to increasing oil prices, will offer an insight into the federal reserve's future policy decisions.
Adding to market sentiment, European stocks, mainly driven by mining shares, closed higher as well. As European investors braced themselves for the upcoming CPI report and the European central banks policy decision. Furthermore, the Bank of Japan has also hinted about its future plans of distancing itself from negative interest rates. Following this comment, the US dollar weakened against the Japanese yen. However, despite emerging market stocks and Pacific-Asian shares rising, Japan's Nikkei saw a slight decline.
As the sterling continued its rebound from a three-month low last week and the euro gained strength, the dollar depreciated against a mix of global currencies. Conversely, the US market did see stabilizations in crude oil prices and an increase in gold prices in response.
This development, driven by the tech-heavy NASDAQ's impressive gains and buoyed by strong performances from major companies like Tesla and Amazon, underscores the resilience of the financial markets. As investors eagerly await crucial inflation data, this upswing in equities provides a reassuring prelude to informed economic decisions.
Source: Culp, Stephen. Reuters. "Wall Street advances, dollar weakens ahead of CPI report". https://www.reuters.com/markets/global-markets-wrapup-1-2023-09-11/. 12/09/23 [Date accessed: 12/09/23].
Edited by: Ansh Pincha
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