Home » Stock Market Highlight: Federal Reserve may be pausing its monetary policy in Sep with signs of economic deterioration
NEW YORK, May 26 (FintechZoom): This 26th of May the market staged a recovery on excellent news from retailers, which gave hope for an economic turnaround despite growing inflation rates.
Risk appetite is on the rise! A slide in US mortgage rates by most since April 2020 and Broadcom Inc.’s $61 billion acquisition of VMware Inc. have helped boost this trend, according to several financial experts who say that these events are likely what’s driving up risk management within businesses across all sectors right now
The S&P 500 ended higher on Thursday, with consumer stocks leading advances after Macy’s Inc. raised its profit forecast and retailers Dollar Tree Inc. and Dollar General Corp said they would increase sales projections in light of strong demand for high-end goods.
The Nasdaq 100 increased almost 3% after Apple Inc. and Tesla helped push it up, while Southwest Airlines Co.’s stock jumped on strong revenue estimates from their last earnings report. JetBlue Airways Group also saw gains today as they announced positive cash flow estimates.
Crude prices rose 3% on Thursday, their most in two weeks. The jump came as long as betting that fuel consumption will increase ahead of Memorial Day weekend which is expected to be a high point for America’s driving season this year.
The long holiday weekend is almost here, but many Americans will be traveling less due to high fuel prices. According to an estimate from the American Automobile Association about 39 million people are expected on roadways between Friday and Monday as record-high costs continue for gas.
Many hope that increased supply can help bring down these figures in the next future because there’s no way anyone could drive everywhere they want just using electric cars alone.
The Federal Reserve may be pausing its monetary policy tightening in September if there are signs of economic deterioration and inflation subsides, according to BofA strategists.
The U.S central bank released minutes from last month’s meeting that showed members were considering a pause at one point during talks about how fast they wanted interest rates hikes or cutbacks over time.
The inflation rate is currently at more than three times the central bank’s 2% target – what will they do if it reaches real 10% or even 15%?