U.S. stock markets are trading higher this Wednesday, as investors monitor new signs of slowing inflation and reassess expectations for the monetary policy of the Federal Reserve. The movement mainly benefits technology stocks and also contributes to Bitcoin's advance, which was again traded above US$ 65 mil.
At the time of publication, the S&P 500 was rising to 7.557,83 pontos, up 0,19%. The Dow Jones Industrial Average was advancing 0,32%, to 52.677,94 pontos, while the Nasdaq Composite was gaining 0,38%, trading at 26.206,09 pontos. The Russell 2000, an index of smaller-cap companies, was up 0,45%, at 2.978,16 pontos.
At the same time, the volatility index VIX fell 2,24%, to 16.13 points, indicating lower demand for protection in the market. Gold was trading at US$ 4.055,30, down 0,35%, while WTI oil for August delivery fell 1,17%, to US$ 78,41 per barrel.
In the cryptocurrency market, Bitcoin followed the more favorable sentiment among investors. The market's largest cryptocurrency was trading at US$ 65.423,47, up 1,11% over the past 24 hours, increasing interest in assets considered riskier.
The main catalyst for the trading session remains the release of economic indicators pointing to a slowdown in inflation in the United States. The producer price index (PPI) fell 0,3% em junho, contrary to economists' expectations, who had projected stability during the period.
The data reinforced the positive impact of the consumer inflation report (CPI), released earlier, which also came in below market estimates. Together, the indicators increased the perception that the Federal Reserve may reduce the pace of monetary tightening in the coming months.
The president of the New York Federal Reserve, John Williams, reinforced this perception by stating that “there are encouraging reasons to expect that inflation has peaked and should gradually decline over the coming quarters.”
With this scenario, traders significantly reduced bets on a rate hike at the U.S. central bank's July meeting. Although the market still considers a further adjustment possible later on, expectations of a less intense tightening cycle favored stocks and boosted risk assets.
Technology companies led the session's gains. Amazon, Apple and Microsoft posted increases close to 3%, while Alphabet advanced more than 1%. The performance of these companies directly helped support the Nasdaq and the S&P 500 throughout the trading session.
Even with improving sentiment in the markets, investors remain attentive to the geopolitical scenario. The recent attacks by the United States against Iran continue to be monitored, although the drop in oil in this session has reduced part of the concern over inflationary pressures linked to energy prices.
Another highlight of the day was BlackRock, whose shares rose more than 6% after the asset manager reported quarterly results above Wall Street expectations. The performance reinforced the market's positive mood and helped keep the S&P 500 today close to new highs, while Bitcoin also benefits from the increased risk appetite among investors.