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U.S. Stocks Open Steady Amid Global Trade War Developments
Wall Street opened on a stable note Friday, as markets reacted to ongoing global trade war tensions following former U.S. President Donald Trump’s decision to freeze new tariff impositions.
U.S. Stock Market Performance at the Opening
- The Dow Jones Industrial Average dipped by more than 15 points.
- The S&P 500 Index and the Nasdaq Composite both edged up by 0.1%.
Trump’s delay in implementing new tariffs boosted investor sentiment, leading to a rise in stock markets, particularly in technology stocks.
Inflation Data and Federal Reserve Policy Expectations
Recent reports on Producer Price Index (PPI) for January, alongside the Consumer Price Index (CPI) released earlier this week, indicate rising inflation concerns. This reinforces market expectations that the Federal Reserve is unlikely to cut interest rates before the second half of the year.
Investors are now awaiting the release of the Personal Consumption Expenditures (PCE) Price Index later this month, which is the Fed’s preferred inflation gauge.
Jerome Powell’s Remarks on Monetary Policy
Federal Reserve Chair Jerome Powell stated during his congressional testimony that the central bank is in no rush to lower interest rates, reflecting a cautious stance on potential monetary easing.
U.S. Market Weekly Performance
- The S&P 500 is on track to gain 1.5% for the week.
- The Dow Jones is expected to rise by 0.9%.
- The Nasdaq Composite is set for a 2.2% weekly gain.
U.S. Retail Sales Decline More Than Expected
The U.S. Census Bureau released January retail sales data, which showed a sharper-than-expected decline of 0.9%, compared to market forecasts of just 0.2%. The previous reading for December showed a 0.4% increase, later revised upwards to 0.7%.
Market Outlook
These economic indicators suggest increasing economic pressures on the U.S. economy, which could influence the Federal Reserve’s monetary policy decisions in the coming months.
