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FX.co ★ U.S. Stocks May See Initial Strength As Consumer Prices Rise Less Than Expected

U.S. Stocks May See Initial Strength As Consumer Prices Rise Less Than Expected

Stocks are expected to trend upwards in early trading on Wednesday, continuing the positive momentum observed in the previous session. Futures for major indices indicate a higher market open, with S&P 500 futures up by 0.5 percent.

Initially, futures suggested a neutral opening, but they shifted to positive after the Labor Department released a report showing that consumer prices in the U.S. increased slightly less than anticipated in April.

The Labor Department reported that the consumer price index rose by 0.3 percent in April, following a 0.4 percent increase in March. Economists had predicted a 0.4 percent rise. When excluding food and energy prices, core consumer prices also went up by 0.3 percent in April, mirroring the increase in March and aligning with economist expectations.

The report further noted that the annual rate of consumer price growth slowed to 3.4 percent in April, down from 3.5 percent in March, matching predictions. Similarly, the annual rate of core consumer price growth decelerated to 3.6 percent in April from 3.8 percent in March, also in line with estimates.

Following the unexpectedly high producer price inflation data from the previous day, this report is likely to bolster renewed optimism regarding interest rate prospects.

The Commerce Department released a separate report indicating that U.S. retail sales remained flat in April, contrary to expectations for a 0.4 percent increase. Retail sales were virtually unchanged after a downwardly revised 0.6 percent rise in March.

Excluding motor vehicle and parts dealers, retail sales inched up by 0.2 percent in April, following a 0.9 percent increase in March, matching economist projections.

On Tuesday, stocks fluctuated during the trading session but ended the day predominantly higher. The major indices all saw gains, with the Dow recovering after ending an eight-day winning streak on Monday. The tech-heavy Nasdaq led the rally, advancing by 122.94 points, or 0.8 percent, to a record closing high of 16,511.18. The S&P 500 climbed by 25.26 points, or 0.5 percent, to 5,246.68, and the Dow rose by 126.60 points, or 0.3 percent, to 39,558.11.

In overseas markets, Asia-Pacific stock markets concluded mixed on Wednesday, with markets in Hong Kong and South Korea closed for holidays. Japan's Nikkei 225 Index edged up by 0.1 percent, and Australia's S&P/ASX 200 Index increased by 0.4 percent, while China's Shanghai Composite Index declined by 0.8 percent.

Meanwhile, major European markets have all moved up. Germany's DAX Index advanced by 0.8 percent, the U.K.'s FTSE 100 Index rose by 0.4 percent, and France's CAC 40 Index increased by 0.2 percent.

In commodities trading, crude oil futures edged up by $0.05 to $78.07 a barrel, following a decline of $1.10 to $78.02 a barrel on Tuesday. Gold is trading at $2,382.50 per ounce, up $22.60 from the prior session's close of $2,359.90. On Tuesday, gold prices climbed by $16.90.

In the currency market, the U.S. dollar is trading at 155.31 yen, compared to 156.42 yen at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0855, up from $1.0819 yesterday.

*Die zur Verfügung gestellte Marktanalyse dient zu den Informationszwecken und sollte als Anforderung zur Eröffnung einer Transaktion nicht ausgelegt werden
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