Forex
S&P 500 Rises as Rate Hike Odds Surge to 90% Amid Hotter Core CPI
US stocks rose on Friday despite growing expectations for a Federal Reserve rate hike next week. The S&P 500 futures were up 0.75%, while Dow and Nasdaq futures rose by 0.83% and 0.84%, respectively.
The core Consumer Price Index (CPI) came in at 2.4%, slightly higher than expected, but the overall CPI remained at 3.4% year-on-year, as predicted. The increase in core CPI was enough to boost expectations of a rate hike next week to 90%, up from 60% the day before.
Despite this, the S&P 500 has recovered slightly above its 50-day Exponential Moving Average (EMA) at 7,600 and is now testing resistance at 7,700. If it holds, buyers will look towards fresh record levels of 7,810.