Slight declines on Wall Street; Inflation in the US dropped to 2.4% – above expectations

Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations

18:46

Decreases in lockdown in Europe. The DAX index fell by 0.3%, the British Potsey shed about 0.1% and the French CAC fell by 0.2%.

18:10

The slight declines on Wall Street continue. In Europe, the main indexes are trading in a similar trend towards the close of the trading day.

In the commodity market, oil prices jump by about 2.5% in light of the geopolitical tensions in the Middle East and alongside the hurricane that is occurring in Florida. The price of a barrel of Brent now stands at 78.4 dollars and the price of a barrel of WTI trades around 75 dollars.

16:47

Slight declines on Wall Street. The Nasdaq is down 0.5%, the S&P 500 is off 0.4% and the Dow Jones is down 0.3%.

Tesla is gathering interest and is down about 0.5%, ahead of the unveiling event of its first autonomous vehicle, the Robotoxy, which will take place at 19:00 US West Coast Time (tomorrow at 5:00 AM Israel Time) at an event at Warner Brothers Studios near Los Angeles. The event has already been postponed several times, which only increased the anticipation and vigilance for it.

16:30

The trading day on Wall Street opened with slight price drops. The Nasdaq is down 0.5%, the S&P 500 is off 0.3% and the Dow Jones is down 0.2%.

15:30

The consumer price index in the US decreased in September to 2.4% from 2.5% at an annual rate (expected 2.3%). At a monthly rate, the index increased by 0.2% (expected: 0.1%). Core inflation recorded a monthly increase of 0.3%, according to As expected and like the previous index, this index rose by 3.2% in the last 12 months, again a tenth above the expectation.

Ronan Menachem, Chief Markets Economist, Mizrahi Tefahot refers to the data: “There is a feeling of stepping on the spot, inflation is faltering, does not threaten to rise again (and therefore confirms the double interest rate cut from last month) but is still ‘sticky’ and reflects the strength of demand.

“Such an index, together with the strong employment report published last week, refutes, at this stage, any fear of a moderation of the US economy and therefore does not require an accelerated course of interest rate cuts.
Yesterday it was even reported that the double interest rate reduction was not unanimously accepted and one of the members preferred a more modest reduction of a quarter of a percent.

“It is important to note that the Fed’s next interest rate announcement is scheduled for 7/11 and will precede the October employment report. Therefore, the next important figure before it will be the price index of household expenses, which will be published later this month.

“It seems that the wind is blowing in the direction of a ‘normal’ interest rate cut next month and it is not impossible that this will also be the last interest rate cut this year, even though the Fed forecast indicates two such cuts.”

15:04

About 30 minutes before the publication of the consumer price index in the US, the future contracts on Wall Street are trading down by up to -0.2%.

Tesla Elon Musk’s electric vehicle giant, is facing a moment that can be called decisive in its history. Tonight (Monday) at 19:00 West Coast Time (tomorrow at 5:00 AM Israel time), the company will unveil its first autonomous vehicle, the Robotaxi, at an event at Warner Brothers Studios near Los Angeles. The event has already been postponed several times, which only increased the anticipation and vigilance for it.

Shares of the British pharmaceutical manufacturer GSK Up more than 6% in London trading after the company will pay $2.2 billion to settle a lawsuit over its heartburn drug Zantac.

14:10

Trading in Europe continues now with slight declines – POTSI and DAX fall by 0.1%, KAK by 0.3%.

Shares of the German car manufacturer Mercedes-Benz Group is down slightly after the company reported a slight drop in car sales in the third quarter amid a drop in demand, particularly in Asia. During the period, the manufacturer sold 503 thousand cars, a decrease of 1% compared to last year. Sales of the group’s electric cars fell by 31% to 42,500. In China, sales fell by 13%.

12:03

Waiting for the consumer price index in the US, European markets have now moved to lower rates – POTSI is down 01%, DAX and KAC are down 0.3%.

The index will serve as the last inflation test before the Federal Reserve discusses its next interest rate decision in early November. The report is expected to show inflation of 2.3%, slowing from August’s 2.5% annual rise in prices, the lowest annual rate since the start of 2021. Over the previous month, prices are expected to have risen 0.1%, down from the 0.2% increase recorded in August.

10:35

Trading in Asia responded today to the records set yesterday on Wall Street with increases – the Hang Seng rose 4%, the Shanghai by 2.5%, the Nikkei by 0.3% and the Kospi by 0.2%.

Trading in Europe this morning follows a mixed trend: POTSI rises by 0.3%, DAX and KAC fall by 0.2%.

08:40

Trading in Asia responds to the highs set yesterday on Wall Street with increases – Hang Seng stands out with a 4% increase, Shanghai rises 2.5%, Nikkei by 0.3% and Kospi by 0.2%.

Futures in the US are trading stable this morning around the base indices.

● Discover Europe, beware of the tourism business: which stocks the small investors flocked to

Yesterday on Wall Street was a day of records in indices and number of shares. Trading closed higher and two of the leading indexes broke records again: the S&P 500 which rose 0.7% (high number 43 this year) and the Dow Jones which rose 1%. Nasdaq added 0.6%.

Nvidia which jumped 25% in the month is trading at $132.3, a touching distance from its peak ($135.6 per share) set in June. Meanwhile, it is already the second largest company in terms of market capitalization. dark first andMicrosoft Third.

The Israeli cyber company Check point increased by about 3% to an all-time high. The largest Israeli company on Wall Street is traded at approximately 22 billion dollars and has increased by 33% since the beginning of the year. About three months ago, Nadav Zafarir was appointed the new CEO of the company and replaced the company’s founder Gil Shoid, who was appointed the company’s chairman.

The chip maker Broadcom increased by about 3% and it also reached a peak. The company, which trades in a market value of 870 billion dollars, has jumped by about 65% since the beginning of the year.

A huge deal in the field of mining: the second largest mining company in the world, Rio Tinto Buy the American lithium producer Arcadium Lithium in a cash deal valued at $6.7 billion and a premium of about 90% over the closing price of the stock at the end of last week. Arcadium jumped 30% yesterday.

stock Alphabetical (Google) decreased by about 2% after it was announced yesterday that the US Department of Justice is considering the possibility of asking the court to order the liquidation of parts of the company. This follows a ruling from August 2024 that stated that the company created an illegal monopoly in the field of Internet search.

Ken Griffin, the billionaire investor who serves as CEO of the Citadel hedge fund, purchased 7.9 million shares of the German pharmaceutical giant last quarter Pfizer and increased his holding in it by 63%.

Analyst recommendations: The social network Reddit rose about 2% after Jefferies began covering the company with a buy rating. Gitlab The open source software development platform provider rose more than 7% after Morgan Stanley gave the company an “overweight” rating.

In the US, bond yields were on a downward trend during the trading day. The 10-year yield fell to 4%, the two-year yield fell to 3.96%. The 10-year government bond yields in the US, which recorded a decrease after the interest rate cut in the country to the level of 3.6%, jumped in recent days following the published strong employment report and the developments in the MAZAT.

According to Itai Lipkowitz, CEO and owner of the Horizon investment house, “The market has gone from a state of grave concerns about a serious Israeli attack in Iran to a state of calm, and now it is expected that the reaction will be measured and will not include the nuclear and oil facilities, among other things because of the reports of contacts between the powers with Iran, and this is a positive horizon for the markets. Of course, what will determine the future trend in the markets will be the actual Israeli reaction.”

In the commodity market, oil prices recovered slightly after shedding about 4% on Tuesday. US crude was trading near $73 a barrel after earlier falling 2.8%. Brent oil hovers close to $76 per barrel. Yesterday’s declines came after Chinese government economists ended a briefing without announcing major new stimulus. The recovery also comes after official data from the US government showed that the country’s oil stocks increased by 5.81 million barrels last week, a sharp increase than expected.

In the US today, the consumer price index for the month of September will be published this afternoon. The index will serve as the last test of inflation before the Federal Reserve discusses its next interest rate decision in early November. The report is expected to show inflation of 2.3%, a slowdown from August’s annual increase of 2.5% in prices, The lowest annual rate since the start of 2021. Over the previous month, prices are expected to have risen 0.1%, down from the 0.2% increase recorded in August.

● The figure that will reveal whether the Fed is getting close to achieving the goal, and the puzzle surrounding the employment market

In addition, the Fed minutes were published yesterday from which it appears that the Federal Reserve officials were divided in their meeting last month regarding the question – how much to reduce the interest rate. The majority voted in favor of the larger half percent reduction that was approved. Proponents of the larger cut “believed that such a recalibration of monetary policy would better align it with the latest inflation and labor market data,” the minutes, which are being released as accepted with a three-week delay, said. There were members of the Fed who believed that it was possible to lower the interest rate by a quarter of a point back in the previous decision, at the end of July, and that the more recent data only strengthened the justification for lowering the interest rate.

At the research and market analysis company S&P Global, vice chairman Daniel Yergin noted that “the global economy is entering a ‘dangerous period’ as never seen before, while tensions in the Middle East remain high. “The bet is that the Israelis will not try to attack the nuclear facilities in Iran at this time,” Yergin estimated, “but in a few months from now, maybe a few weeks, whatever the time may be, Iran will have the ability – so they estimate – to launch nuclear weapons, and that raises the risks.” , noted Yergin, who compared the situation to the missile crisis over Cuba in 1962.

In a week, the interest rate decision will be published in the European Union, and after two reductions have already been made in the current cycle, the senior officials of the European financial system believe that the time has come for another reduction. The head of the Central Bank of France, François Villeroy, said that “another interest rate reduction in the Eurozone is highly probable, and it will not be the last. The pace depends on how the fight against price increases develops.”