(Bloomberg) – Wall Street merchants are concerned about the potential impacts of American prices on inflation have not received a lot of relief from economic data which only emphasize concerns about price pressures, strengthening speculation speculation that the federal reserve will not be in a hurry to reduce interest rates.
The shares have erased this week’s earnings, the S&P 500 down approximately 1%. President Donald Trump said he would announce reciprocal samples next week in an escalation of his trade war. United States Steel Corp. Sulfs as he indicated that Nippon Steel Corp. plans to invest in the company instead of a pure and simple purchase. The actions were subject to pressure after the data showed a slide in consumer feeling during the concern about inflation. Mixed job figures have highlighted a moderating labor market – however in good health – and a jump in wages. The obligations fell. Megacaps slipped in the middle of a disappointing perspective of Amazon.com Inc.
The latest economic readings help explain why the decision -makers said they were not in a hurry to reduce loan costs after three rate drops last year. While traders are still betting, the next decision will be a reduction, they will only price one in September.
“The wider image is always a resilience of the labor market and sustained wage pressures,” said Seema Shah at main Asset Management. “It simply gives Fed few reasons to immediately reduce policy rates.”
The Nasdaq 100 lost 1.3%. The industrial average of Dow Jones has slipped 1%. A MAGNIFICENT SEVEN megacaps gauge has flowed 2%. The Russell 2000 fell by 1.2%. Amazon dropped by around 4%. Roblox Corp. is part of an active investigation by the American Securities and Exchange committee, according to information obtained by Bloomberg News.
The yield on treasury bills at 10 years has advanced five base points at 4.49%. The Bloomberg Dollar Spot index increased 0.2%.
The non -agricultural payroll increased by 143,000 months last after the upcoming revisions to the previous two months. Other revisions only made once a year were not as serious as in the past – employment gains have an average of 166,000 per month last year, a slowdown compared to the rate of 186,000 initially reported.
The unemployment rate was 4.0% – the survey used to produce the number of separate revisions incorporated to reflect a new estimate of the population at the start of the year, which makes the figure incomparable in previous months. In the meantime, time wages have climbed 0.5%.
“Strong growth in wages is good for workers and should be considered a positive for consumer spending,” said Bret Kenwell at Etoro. “However, Wall Street has watched this gauge closely in recent years, fearing that too much of wage growth would push inflation higher.”
Apart from the title of the title, the last job report is not an alarm reason, he said.
“Although some investors can worry about implications for inflation or rate reductions, do not be mistaken: it is better to have a solid economy and labor market than a deterioration environment. Remember that actions tend to make a slight inflation, ”concluded Kenwell.
For Neil Dutta to Renaissance Macro Research, the income reaction fixed to data is an opportunity to go to the asset class for a long time.
“In the end, the Fed will have to reduce rates because too many things do not work with such high rates,” said Dutta. “Looking at the data itself, the cyclical areas of the labor market are slow. The goods that produce a job are soft and the total hours of the manufacturing sector have dropped. »»
However, Dutta also notes that the low unemployment level probably maintains the Fed on the key.
“The Fed is not in a indulgent mood at the moment,” he said. “They are looking for reasons to wait and today’s report gives them one.”
The governor of the Fed, Adriana Kugler, said that it was appropriate to maintain the benchmark interest rate of the Fed where he is for a certain time, given a stable labor market, limited progress on the Inflation in recent months and uncertainty about the prospects for fiscal and commercial policy. In the meantime, the president of Minneapolis Fed, Neel Kashkari, told CNBC that he expects inflation continues to cool for the target of 2%, allowing political decision -makers to reduce rates of interest “modestly” at the end of the year.
Lindsay Rosner at Goldman Sachs Asset Management said that the Fed would probably be prudent to read too much in today’s report.
“Anyway, you turn it, the Fed should feel fairly comfortable sitting tightly the rest of winter knowing that it was the right decision to hit the break button on the rate reductions,” said Declared Charlie Ripley at Allianz Investment Management.
The Fed has already postponed expectations for its next drop in rate, and this job report probably justifies this approach – if not pushing them to postpone expectations even more, according to Jason Pride in Glenmede.
“The federal reserve has another series of inflation and employment data in Mull before the next announcement scheduled for March 19,” Mark Hamrick told Bankrate. “We see the remaining patient before making another interest rate movement after recently chose to support Pat.”
During the coming week, the report on the consumer price index of American January is likely to prove a mixed bag for the Fed against inflation, while retail sales have probably slowed down, according to Bloomberg Economics .
“The basic IPC has surprised the increase in January in 13 in the past 14 years, the yields that increase in 6 on the last 7 February,” said Guneet Dhingra at BNP Paribas. “However, this year, we could see an asymmetry towards lower yields – an increase in the rise could be considered as a usual” distortion of January, but a downward print is considered good news. “
Company’s protruding facts:
Amazon.com Inc. warned investors that he could face capacity constraints in his Division of Cloud Computing despite the intention to invest some $ 100 billion this year, most of the money going to Data centers, local fleas and other equipment to provide artificial intelligence services.
Apple Inc. plans to unveil a long -awaited overhaul of the iPhone SE in the coming days, a decision that will modernize its model at a lower cost in order to stimulate growth and attract consumers to pass other brands.
Pinterest Inc. posted solid income from the holiday quarter and gave an optimistic sales forecast during the current period, a sign that his advertising business continues to grow despite increased competition from his much greater competitors in the social networking space.
Cloudflare Inc., a software company, reported results from the fourth quarter that beat expectations.
Expedia Group Inc. has published best reservations better than expected in the last months of 2024, reflecting the resilient travel demand during the winter holiday season.
Nikola Corp. Explore a possible bankruptcy deposit, according to people familiar with the issue, after a tumultuous period during which the manufacturer of electric trucks changed between the darling of the action and the company in the grip of scandal.
Some of the main market movements:
Actions
The S&P 500 fell 0.95% at 4 p.m.
The Nasdaq 100 dropped by 1.3%
The industrial average of Dow Jones has dropped by 1%
The MSCI global index fell 0.8%
Bloomberg magnificent 7 Total Return index fell by 2%
The Russell 2000 index fell 1.2%
Currency
The Bloomberg Dollar spot index increased by 0.2%
The euro dropped 0.5% to $ 1,0329
The British book fell 0.2% to $ 1,2409
The Japanese yen has changed little at 151.29 for the dollar
Cryptocurrency
Bitcoin dropped from 0.9% to $ 95,923.59
Ether dropped by $ 2,601.22
Bonds
The yield on treasury bills at 10 years has advanced five base points at 4.49%
The yield in 10 years of Germany has changed little to 2.37%
The yield in 10 years of Great Britain has changed little at 4.48%
Goods
West Texas Intermediate Brut increased by $ 70.95 per barrel by $ 70.95
Gold at point increased by 0.2% to $ 2,861.96 per ounce
This story was produced with the help of Bloomberg Automation.
– With the help of Lynn Thomasson, Allegra Catelli and Robert Brand.
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