Inflation data makes investors optimistic – Nachrichten AG

In a welcome sign for investors, the US stock markets experienced an upswing on Friday. The Dow Jones closed at 41,563 points in New York, an increase of 0.6 percent from the previous day. The S&P 500 also gained 1.1 percent to around 5,650 points, while the Nasdaq 100 rose 1.3 percent to around 19,575 points.

The positive movements in the markets are largely due to the inflation data released. The core PCE index, which excludes food and energy prices, recorded an increase of just 0.2 percent in July compared to the previous month. Compared to the previous year, the price increase was stable at 2.6 percent, which is lower than previously forecast and raises hopes among many investors that the US Federal Reserve will possibly cut interest rates.

Market developments and currency movements

Investors are optimistic about the future as inflation in the US is still seen as under control. With the new figures moving closer to the two percent inflation target, the Federal Reserve may soon be forced to cut interest rates. This is often interpreted as a sign of monetary easing, which benefits markets in general.

While the US stock markets are flourishing, the European common currency is weaker on Friday. One euro was traded at a rate of 1.1054 US dollars, which means that one US dollar costs 0.9046 euros. This development could affect the international competitiveness of European exporters, especially in times of rising inflation.

In addition, commodity prices were also important. The price of gold recorded a disadvantage of 0.7 percent, meaning that around 2,503 US dollars was paid for a troy ounce of gold on Friday evening. This corresponds to around 72.80 euros per gram and shows that investors may be shifting to stocks and other investment opportunities.

The price of oil also saw a clear indication. A barrel of North Sea Brent crude was trading at $78.80 on Friday evening at around 10 p.m. German time, which is 114 cents or 1.4 percent less than at the end of the official trading day. Such price movements could be due to possible changes in global demand or adjustments to supply.

With the release of the inflation results, the markets are now in a phase of optimism, as many investors hope that the Federal Reserve will take proactive action against inflation. A stable rise in the stock markets could have a positive impact on consumer confidence and the overall economic situation.