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US Stocks Head For Weekly Gains Amid Easing Inflation Concerns

While policymakers remain firm about a further tightening in monetary policy until inflation pressures fully abate, traders see a 63.5 per cent chance of the Fed raising rates by 50 basis points next month instead of a 75 basis points hike

Photo Credit : Reuters

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Wall Street's main indexes rose on Friday, setting the S&P 500 and the Nasdaq for a fourth straight week of gains on easing bets of another super-sized interest rate hike by the Federal Reserve after softer-than-expected inflation data this week.

The Dow Jones Industrial Average added 123 points, or about 0.4 per cent. The S&P 500 gained 0.5 per cent, and the Nasdaq Composite rose 0.6 per cent.

The S&P 500 is up 2 per cent on the week, and is on track for its longest weekly winning streak since November 2021. The Dow is up 2 per cent for the week, while the Nasdaq Composite is 1.5 per cent higher. For the Nasdaq, it is also the fourth positive week in a row.

While policymakers remain firm about a further tightening in monetary policy until inflation pressures fully abate, traders see a 63.5 per cent chance of the Fed raising rates by 50 basis points next month instead of a 75 basis points hike.

The Fed has raised its policy rate by 225 basis points since March as it battles to cool demand without sparking a sharp rise in layoffs. 


(Reuters)


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