Weak session on Wall Street, focus on macro data and “soft landing”

Positive American market doubts about first Fed cut

(Telestock) – Weak session on Wall Street, which is nevertheless preparing to end the week with a sharp increasewith investors’ attention remaining on macroeconomic data to understand what decision the Federal Reserve will make next month.

Before the bell, it emerged that the new home construction in the United States fell in July to their lowest level since the pandemic, as builders struggle with weak demand that keeps inventory levels high.

Yesterday the industrial production (-0.6% m/m) and the retail sales (+1% m/m) for the month of July confirmed the “soft landing” picture. The day before, the consumer pricesagain in July, were substantially in line with expectations: the headline measure recorded a variation of +0.2% m/m (as expected and against -0.1% previously) and of +2.9% y/y (against +3% expected and previously).

In an interview with National Public Radio, Chicago Fed President Autan Goolsbee He said the U.S. economy is showing no signs of overheating, so central bank officials should be cautious about keeping tight policy in place longer than necessary.

After the weak July nonfarm payrolls report earlier this month, many investors had suggested a 50 basis point cut was needed at the next Fed meeting, but the consensus now appears to be for a more modest 25 basis point cut. Attention is already on the Fed chair’s speech. Jerome Powell at the annual central bank symposium in Jackson Hole.

Among the Company Announcements, Texas Instruments announced it will receive $1.6 billion in funding under the CHIPS Act; Pfizer And BioNTech said the combined Covid-flu vaccine missed one of its targets in a phase three trial; the largest shareholder and co-CEO announced a delisting offer B.Riley.

Looking at the main indexes of Wall Street, the Dow Jones it is substantially stable and is positioned at 40,537 points, while, on the contrary, it is positioned below parityS&P-500which falls back to 5,531 points. Slightly down is the Nasdaq 100 (-0.44%); consolidates the levels of the day beforeS&P 100 (-0.19%).

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