US benchmark equity indices finished higher on Monday as investors assessed a survey on consumer inflation expectations and the likelihood of an interest rate cut next week.
- According to the Federal Reserve Bank of New York, consumer inflation expectations for the medium-term increased in August, while the one-year and five-year outlooks remained stable. The labor market outlook was described as “mixed but largely stable.”
- Government data, set to be released Wednesday, is expected to show a 0.2% monthly increase in US consumer inflation for August and a 2.6% year-over-year rise, based on Bloomberg’s consensus. The official producer price index report for August is scheduled for Thursday.
- The probability of a 25-basis-point interest rate cut next week climbed to 73% on Monday, up from 70% on Friday, according to the CME FedWatch tool. Meanwhile, the chances of a larger 50-basis-point cut decreased to 27% from 30%.
- October West Texas Intermediate crude oil rose by $1.04 to close at $68.36 per barrel, while November Brent crude, the global benchmark, increased by $0.91 to $71.97.
- Boeing (BA) shares gained 3.6% after the company reached a tentative labor agreement with the International Association of Machinists and Aerospace Workers, which represents over 33,000 employees.
- Progress Software (PRGS) announced it will acquire ShareFile, a document collaboration business, from Cloud Software Group for $875 million. Progress shares fell 1.8%.
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