New inflation data boosts Wall Street – Walmart shares are in demand

new York In anticipation of more cautious rate hikes by the Federal Reserve, investors are boldly grabbing US stocks. The US benchmark index Dow Jones and the broad S&P 500 rose 0.4 percent to 33,358 points and 1.2 percent to 4,002 points on Tuesday. The tech-heavy Nasdaq gained 2.1 percent. Companies in this sector benefit from a less restrictive monetary policy because they have to finance their strong growth with debt.

The rally was triggered by the surprisingly small increase in US producer prices in October. “The data supports hopes that inflation is turning the corner,” said Robert Pavlik, portfolio manager at wealth manager Dakota Wealth. He therefore expects the Fed to only raise the key rate by half a percentage point in December after four XXL rate hikes of 0.75 percentage points each in a row. The pace in the coming year depends on further price developments.