Notably, the existing range of 5.25-5.5%, is the highest since 2001.Īt this stage, growth stocks are likely to outperform markets in September as the Fed is unlikely to raise interest rates further and the fear of a near-term recession has reduced to a great extent. There is a 7% chance that the rate will be hiked by 25 basis points. Both data were lower than the consensus estimates.īuoyed by the above-mentioned weak economic data, the CME FedWatch tool is currently showing 93% probability that the Fed will keep the range of interest rate unchanged in the September FOMC meeting. The core PCE price Index - the Fed's most favorite inflation gauge - increased 0.2% month over month and 4.2% year-over-year in July. Year over year, the wage rate increased 4.3% in August, below the consensus estimate of 4.4%. Average hourly wage rate rose 0.2% in August compared with 0.4% in July.
August marked the highest monthly unemployment rate since February 2022. The unemployment rate climbed to 3.8% in August from 3.5% in July. The data for June was also revised downward by 80,000 to 105,000, marking it the smallest monthly gain since December 2020. However, the data for July was revised downward by 30,000 to 157,000. The Department of Labor reported that nonfarm payrolls in August came in at 187,000, exceeding the Zacks Consensus Estimate of 173,000. Maintenance of the interest rate status quo may ensure a northbound journey for Wall Street.
#Splunk on call series
In this regard, investors are hopeful that a series of recently released weak economic data may act as a barrier for the central bank to hike interest rates further. In the absence of earnings results, the Fed's September FOMC meeting will be the key focal point this month. September is historically the worst-performing month on Wall Street. Market participants remain worried about how markets will behave this month. stock markets faced major setbacks for the first time in 2023. The S&P 500 and the Nasdaq Composite terminated a five-month win streak. The Dow posted its worst month since May, the S&P 500 saw the worst monthly performance since February and the Nasdaq Composite recorded its worst month since November 2022. The three major stock indexes - the Dow, the S&P 500 and the Nasdaq Composite - were down 2.4%, 1.8% and 2.2%, respectively. Wall Street closed August on a negative note. Here are highlights from Tuesday’s Analyst Blog: Can Markets Resume Northward Journey in September? 5 Picks Stocks recently featured in the blog include: NVIDIA Corp. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Chicago, IL – Septem– announces the list of stocks featured in the Analyst Blog.
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