Nasdaq Index, Dow Jones, S&P 500 News: Wall Street Optimistic Ahead of Key CPI Report, Fed Meeting

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Updated: Dec 12, 2023, 10:19 GMT+00:00

Wall Street's streak, led by Dow Jones, continues as focus shifts to U.S. CPI data and Fed rate decisions.

S&P 500 Index, Dow Jones Industrial Average, Nasdaq-100 Index

Highlights

Wall Street anticipates key inflation data amid rally.
Mixed stock movements following earnings news.
CPI data, Fed meeting to influence Treasury yields.

Wall Street Gears Up for Inflation Data Amid Rally

Wall Street’s pre-market session sees stock futures edging higher, with investors keenly awaiting fresh inflation data. This comes as the Dow, S&P 500, and Nasdaq Composite each extend their winning streaks, marking six consecutive weeks of gains.

Earnings News and Stock Movements

At 09:39 GMT, Dow Futures are trading 36863.00, up 57.00 or +0.15%. S&P 500 Futures are at 4681.75, up 3.25 or +0.07% and Nasdaq Futures are trading 16469.75, up 19.75 or +0.12%.

Stocks rose modestly on Monday, with the S&P 500 hitting a peak since March 2022 and the Dow reaching its highest since January 2022.

However, Oracle’s shares dipped 7% after its fiscal second-quarter revenue fell short of expectations. Additionally, Hasbro announced layoffs of about 1,100 employees amid continued soft sales, causing its shares to drop more than 5% in after-hours trading. Lucid Group also experienced a setback, with shares slipping nearly 3% after the resignation of its CFO.

CPI Report and Fed Meeting Impact on Treasury Yields

U.S. Treasury yields have declined as the market awaits November’s U.S. consumer price index (CPI) data and the Federal Reserve’s year-end meeting. Economists expect the headline CPI to be flat compared to the previous month, with a 3.1% year-over-year increase, hinting at a slowdown from October’s 3.2%. The core-CPI, excluding food and energy, is estimated to have risen by 0.3% in November from October and 4.0% year-over-year.

Investor Expectations and Economic Outlook

Investors anticipate the Fed will keep interest rates stable, looking for hints about future rate cuts and economic expectations, including potential recession forecasts.

The CPI report and the Fed meeting could test investor optimism, with hopes for a balance of softer economic growth without a recession and possible Fed rate cuts in response to declining inflation.

These developments are crucial as traders and economists analyze the CPI data and the Fed’s rate policy and economic projections.

Technical Analysis

Daily E-mini Dow Jones Industrial Average

The E-mini Dow Jones Industrial Average currently presents bullish market sentiment. The futures’ daily price of 36892 significantly surpasses both its 200-day and 50-day moving averages, at 34827 and 34813 respectively, indicating a strong upward trend over these periods.

Moreover, the price is comfortably above the minor support level of 36450, further reinforcing the bullish outlook. It also exceeds the main support level of 35268, suggesting robust strength in the market. This positioning well above key moving averages and support levels points to sustained bullish momentum in the E-mini Dow Jones Industrial Average.

Traders are likely to view these indicators as signs of continued upward movement, with the significant gap above the moving averages and support levels underscoring the strength of the current rally.

About the Author

James Hyerczykauthor

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.