Stocks increased on Monday as investors hoped the Federal Reserve will decide against raising interest rates on Wednesday.
By 56 points, or 0.2%, the Dow Jones Industrial Average increased. The Nasdaq Composite rose 0.5%, while the S&P 500 rose 0.2%.The S&P 500 is back above 4,300 after Monday’s moves, which is close to its highest point since August.
With traders pricing in a 74% likelihood that there won’t be a raise on Monday morning, the CME Group’s FedWatch tool shows that markets have come to believe that the Fed will forego another rate hike during this week’s meeting.
Given that economists anticipate the consumer price index to show inflation declining to a 4% annual rate in May, Tuesday’s inflation data may assist support the argument that inflation is abating.
This is a decrease from the previous month’s 4.9%.
Source (CNBC)
