US stock market about to stop losing streak after wholesale inflation data

The Dow Jones and S&P 500 saw four consecutive days of declines, the longest losing streak since June 18, according to Dow Jones Market Data.

What drives the market?

The bulls started back early Friday to cap off a shortened holiday week that has seen stocks lose money for four straight sessions and could lead to a second week of losses.

The week’s drop comes amid concerns about the impact of the delta variant of the coronavirus in recent months on global economic growth, mainly among the unvaccinated.

Biden on Thursday New vaccine mission announced, including the requirement that branch operations staff as well as federal contractors be vaccinated, there is no alternative to testing. He is also discussing a Labor Department rule that requires businesses with 100 or more workers to ensure their employees are vaccinated or test negative weekly or more often.

The US averages just under 150,000 new cases per day, with 53% of the population fully immunized, behind many countries in Europe and Canada. according to a New York Times follower.

While the focus is on rising COVID cases, markets are also watching the Federal Reserve for when to ease its bond purchases. Recent comments by policymakers have suggested to some that the Federal Reserve might announce a cut plan sooner rather than later. Investors will have to wait until September 21-22 for the next meeting of the Federal Open Market Committee. However, there has been speculation that the Fed will set the stage for the upcoming meeting to announce plans to reduce monthly asset purchases at its meeting in early November, according to the report. The Wall Street Journal.

Read: Fed’s Kaplan, Rosengren sell stocks to avoid conflict of interest

Meanwhile, a report on wholesale inflation came out hotter than expected. Producer Price Index of the United States up 0.7% in August, the Labor Department said on Friday, down from a 1% gain in July but up from the median forecast of economists polled by the WSJ for a 0.6 percent gain.

Some Fed officials have described inflation as short-lived, and economists are starting to talk about peaking prices in the wholesale sector. However, manufacturers are still struggling with shortages, bottlenecks and shipping difficulties.

“We expect major central banks to continue to support growth, keeping interest rates lower for longer. Mark Haefele, chief investment officer at UBS Global Wealth Management, told clients in a note on Friday.

The European Central Bank said on Thursday that it will conduct asset purchases under its pandemic emergency purchase program, or PEPP, at a “just right” NSlower speed” after accelerating purchases in recent quarters.

Sentiment also seems to be getting a boost from geopolitics, with gains across Asia after phone call between Biden and his Chinese counterpart Xi Jinping. “The call lasted 90 minutes with both sides making the call, although the civilized tone seemed to act as a general boost to risk sentiment overnight,” said Saxo Bank chief investment officer Steen. Jakobsen, said in a note to clients.

How do other assets trade?

• 10-year Treasury bond
  TMUBMUSD10Y,
  1.320%

  up 2 basis points to 1.32%. Yields and debt prices move in opposite directions.

• The dollar was trading 0.1% lower, as measured by the ICE US Dollar Index
  DXY,
  -0.03%,
  stands at around 92.34.

• Gold futures are rising, with December contract
  GC00,
  -0.29%

  rose 0.2% to $1,803 an ounce.

• Oil contract
  CL00,
  + 2.39%

  rose, with West Texas Intermediate crude rising 1.7% to $69.25 a barrel.

• Hang Seng
  HSI,
  +1.91%

  up 1.9%. Elsewhere in Asia, Shanghai Composite
  SHCOMP,
  + 0.27%

  close 0.3% higher and Japan’s Nikkei 225 Nike 1.2% increase.

• European shares are mostly higher, with Stoxx Europe 600
  SXXP,
  + 0.24%

  up 0.6% and FTSE 100
  UKX,
  + 0.32%

  reached 0.4%.