- The DJIA notched its sixth-straight gain, while the S&P 500 closed firmly higher for the fifth time in six sessions
- All eyes now turn to the European Central Bank, (ECB).
U.S. stocks ended higher on Wednesday, anticipating an easier money cycle in central bank policies ahead of Thursday's ECB. The DJIA notched its sixth-straight gain, while the S&P 500 closed firmly higher for the fifth time in six sessions while the Nasdaq broke up out of its three-day losing streak. The DJIA added 227.61 points, or 0.9%, to 27,137.04, ending above 27,000 for the first time since July while the S&P 500 index added 21.54 points, or 0.7%, to 3,000.93. The Nasdaq Composite index gained 85.52 points, or 1.1%, to 8,169.67.
US data
The US PPI lifted 0.1% m/m in August as the cost of services offset the drop in the price of goods. "Core PPI was up 1.8% in the 12 months to August. Despite this inflation measure coming in stronger than expected the Federal Reserve is still expected to cut interest rates next week – a decision the market has now fully priced in," explained analysts at ANZ Bank
ECB outlook
Eyes now turn to the ECB. "The market is expecting a strong stimulatory package. Interest rates are expected to drop 10 to 20bp with market expectations weighted towards 10bp. QE worth 30 to 50 billion euros per month for the next 9-12 months is expected, along with a tiered deposit rate and dovish forward guidance," the analysts at ANZ Bank explained.
DJIA levels
The DJIA has printed another higher high while climbing through the 26900s and falling just shy of the 27200s targets, and specifically, 27398 level. On the flip side, the 200-DMA is located at 25649 below the 21-DMA that sits just above the pivot. Further below lies the May and Jun lows in the 24700s as a double-bottom target.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.