Price AnalysisStocks

S&P 500, Nasdaq, Dow Jones Price Prediction Following Higher-Than-Forecasted June Inflation Figures

  • Nasdaq lost 1.57%, Dow Jones 0.16% and S&P 500 0.93% las week.
  • The United States revealed higher-than-anticipated June inflation numbers.
  • Investors will concentrate on the Q2 earnings data.

Wall Street’s leading indexes weakened over the past week following high-than-anticipated June inflation data and an unsatisfactory first phase of the Q2 earnings results.

The June CPI (Consumer Price Index) increased by 9.1% Y/Y. Such developments triggered the speculations that the Federal could go for a 100bp hike in the next meeting.

The United States Producer Price Index gained 11.3% Y.Y in June, exceeding expectations. And that would mean a more aggressive approach by Fed, translating to hiked rates to battle the persistent inflation.

Jerome Powell, Fed Chair, admitted that inflation numbers have been more worrisome. Nevertheless, Fed Governor Christopher Waller erased the chances of a 100 basis point rate hike. Waller stated that the markets could have surpassed themselves by considering a 100bp rate hike during July.

The initial phase of Q2 earnings reports also added to the investor woes about the global economy, which stares at short-term headwinds.

Meanwhile, Moran Stanley and JPMorgan Chase published a drop in Q2 outcomes that missed estimates by analysts. Nevertheless, the second-quarter earnings season will peak in a higher gear next week.

  • S&P 500 – 0.93% Down

The week saw S&P 500 weakening by 0.93%, closing at 3,863 pts. Upside chances stay limited this week, and prices declining beneath 3,800 pts would reveal a massive sell signal.

  • DJIA 0.16% – Down

The Dow Jones Industrial Average dropped 0.16% during the week to close at 31,288 pts. The support sits around 31,000 pts, and a decline beneath the mark would mean a sell sign, opening the gates towards 30,500pts.

Upside possibilities remain constricted, but a price jump past 32,000pts will open the path to 32,200 pts.

  • Nasdaq Composite (COMP) – 1.57% Down

Nasdaq Composite dropped 1.57% over the week, closing at 11,452 pts. Losing the stable support at 11,000 pts would trigger price drops towards 10,500. Meanwhile, overcoming the initial resistance at 12,000 will clear the road towards 12,500 points.

Conclusion

Wall Street’s primary indexes weakened over the past week as investors remained cautious following the higher-than-anticipated United States inflation figures in June.

June saw the CPI index jumping by 9.1% Y/Y. That triggered speculations of a possible 100bp rate increase during this month’s financial meeting.

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