Wall Street sleeps peacefully, waiting for Powell. Moderna speeds up nearly 20% – Bolsa

The momentum given at the beginning of the session on Wall Street, after the release of US inflation data, continued until the end of trading. The CPI numbers have shifted to color and the three major indices are painted green.

The Dow Jones Industrial Average rose 0.30% to 34,108.64 points, while the global Standard & Poor’s 500 index grew by 0.73% to 34,108.64 points. 4019.65 points🇧🇷 The Nasdaq Technology Index rose 1.01% to 11,256.81 points.

The slowdown in inflation numbers fueled hope that the pace of US interest rate hikes will also slow after the US Federal Reserve (Fed) monetary policy meeting, which ends on Wednesday. The market now expects the federal funds rate to rise by 50 basis points, to a range of 4.25% to 4.5%, far from the last consecutive increases of 75 basis points.

“Overall, this is good news for the Fed, as for two consecutive months there have been signs of a slowdown in inflation,” Subadra Rajappa, Société Générale’s US head of strategy for the debt market, considered in remarks to Reuters.

The chief economist at Morgan Stanley in the US, Ellen Zentner, also indicated that the coming times will be characterized by smaller interest rate increases.

The chief economist of the Wall Street giant believes that the central bank led by Jerome Powell (pictured) should increase the benchmark rate by 25 basis points at its February meeting, without expecting any increase in March, which will set a peak interest rate range for US interest rate managers between 4.50% and 4.75%.

The annual inflation rate in the US eased to 7.1% in November from 7.7% in October. On the other hand, it increased by 0.1% compared to the previous month, the US Department of Labor announced this Tuesday. This is the smallest monthly increase in more than a year, which may indicate that the peak of inflation has already passed.

Among the major market movements, Moderna’s prices rose 19.23% after tests of a vaccine combined with Merck’s drug showed promise in combating oncological diseases. And so Merck also added, closing with a gain of 1.78%.

In contrast, shares of Pinterest rose 11.76%, after Piper Sandler revised the recommendation for the platform’s titles — from “neutral” to “overweight.”