FX.co ★ US stock indices maintain rally

The US stock indices closed on Friday in the black, logging a large increase over the past week. Last Friday, the Dow Jones advanced by 1.19%, the heavy-tech NASDAQ gained 2.11% and the S&P 500 rose by 1.53%. According to the results of the past week, the Dow Jones grew by 2.7%, the S&P 500 jumped by 3.6%, and the NASDAQ appreciated by 4.1%.

Wall Street experienced a recovery thanks to several factors. Traders are waiting for the release of the US Consumer Price Index for August. Analysts expect the figure to decrease to 8.1% from the July level of 8.5%.

Investors are also closely following the macro states of other major economies. So, in China, there was a slight drop in inflation last month. The reading totaled 2.5% versus the July figure of 2.7% in annual terms. Notably, analysts had projected the reading to amount to 2.8%. Thus, a slowdown in inflation in China gives investors hope for further easing of monetary policy.

Yesterday, the Governing Council decided to raise the three key ECB interest rates by 75 basis points. The ECB also announced rate hikes at the next few meetings.

In his speech last week, Fed Chair Jerome Powell once again voiced a strong commitment to aggressive tightening to cap soaring inflation. After his speech, all three benchmark indices started a rally. However, now, they are lacking new drivers for further growth.

Kroger, Co. shares added 7.4% as the company announced a rise in its net profit by 1.6 times in the second quarter of 2022. The adjusted profit and revenue topped analysts' expectations.

Zscaler, Inc. stocks jumped by 22% after the cybersecurity company's quarterly results and outlook exceeded Wall Street expectations.

DocuSign, Ink. shares rose by 10.5% as the company's adjusted revenue and profit for the second quarter of 2022 surpassed analysts' forecasts.

Caterpillar stocks grew by 3.5% after the company reached a settlement with the Internal Revenue Service that resolves a tax dispute without any penalties

Despite the fact that the net profit of RH, Inc. decreased by 1.9 times, its shares climbed by 4.5%. Besides, the adjusted net profit turned out to be higher than anticipated.

The shares of Tapestry, Inc., which includes many well-known fashion brands, went up by 2.7% following the publication of the company's three-year growth strategy. it expects to clock earnings per diluted share of over $5 and revenue of $8 billion by the fiscal year 2025. The operating margin is expected to come in at 19%. The company also intends to buy back approximately $700 million in common stock and pay out 35-40% of the profit as dividends.