Updated Stock Market Pricing & News for Canada & US

The market is cheering the fact that the rate of consumer price increases edged lower in July. Roblox isn’t the only video game company that’s getting hit by growing fears of a weakening economy. Grand Theft Auto maker Take-Two Interactive (TTWO), which recently bought mobile gaming company pepperstone broker Zynga, also disappointed Wall Street with its latest results, The stock fell 4% Tuesday on the news. “It’s highly unlikely they would say the US is in recession now given the strength of the jobs market,” he said, adding that the poor GDP reports were largely driven by inventory drawdowns.

1. “Inflation went up like an elevator but it will go down like an escalator,” Brian Belski, chief investment strategist with BMO Capital Markets, told CNN’s Alison Kosik on “Markets Now” Wednesday.
2. Hopes of a slower pace of Fed tightening helped fuel the market rally Wednesday.
3. But what’s particularly noteworthy is that many of Wall Street’s biggest winners are stocks with ties to the housing market.
4. “It’s highly unlikely they would say the US is in recession now given the strength of the jobs market,” he said, adding that the poor GDP reports were largely driven by inventory drawdowns.
5. In other words, people are keeping a closer watch on how they spend their Robux due to inflation concerns.
6. Even though inflation cooled off considerably in July, the cost of living remains uncomfortably high and may not get back to normal levels anytime soon.

Belski thinks inflation pressures will take time to ebb and that investors shouldn’t expect prices to fall as quickly as they soared. That said, he is encouraged by the fact that commodity costs are starting to decline and supply chain issues are abating. US stocks soared higher on Wednesday after a key inflation index showed that annual inflation is slowing, surprising analysts who expected worse news.

Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research, said he thinks the Fed may boost rates by only a quarter of a point at its November meeting, and then hit pause after that. Before the release of Wednesday morning’s CPI report, fed funds futures trading on the CME were indicating that the market was pricing in a 68% chance of another three-quarter point rate hike in September. What’s more, Peterson is also predicting a recession in the next few months. The good news is that she thinks it will be shallow and short-lived. The worst economic numbers will be in the fourth quarter of this year and early 2023, Peterson said. Major tech stocks rose on the news, Facebook parent company Meta was up by 5.8% and Netflix was 6% higher.

The Nasdaq ends worst bear market in 14 years

Investors appear to be betting that housing sales, which had started to cool as prices and mortgage rates climbed, may not fall off a cliff after all if the Fed becomes less aggressive. Hopes of a slower pace of Fed tightening helped fuel the market rally Wednesday. But what’s particularly noteworthy is that many of Wall Street’s biggest winners are stocks with ties to the housing market. As stocks settle after the trading day, levels might still change slightly. The consumer price index for July rose 8.5% year-over-year, and was flat compared to June.

Stocks fell ahead of Friday’s jobs report as a rally in oil amid geopolitical tensions triggered a flight to the safest corners of the market. All market data (will open in new tab) is provided fxdd review by Barchart Solutions. What’s more, the company’s average bookings per daily active user (ABPDAU) number, which looks at how much money people are spending to buy virtual goods, plunged 21%.

Closing bell: Markets soar after key inflation report shows slowing price hikes

And Belski told Kosik he thinks many investors still haven’t factored that into their earnings forecasts. Even though stocks soared in July after a rotten first half of 2022, “People are still too bearish,” Belksi said. “Inflation went up like an elevator but it will go down like an escalator,” Brian Belski, chief investment strategist with BMO Capital Markets, told CNN’s Alison Kosik on “Markets Now” Wednesday.

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The next Federal Reserve meeting is still six weeks away, and a lot more data on inflation, the job market and consumer spending will come out in the meantime. But for what it’s worth, investors are now of the mindset that the Fed won’t have to raise rates as aggressively as previously thought come September 21. But the Federal Reserve still may need to keep aggressively raising rates, despite the slowdown in inflation. Dana Peterson, chief economist with The Conference Board, told Kosik that she thinks a three-quarters of a point rate hike is still likely in September. US stocks rose after Wednesday’s inflation report eased investors’ expectations on how quickly the Fed will raise interest rates.

In other words, people are keeping a closer watch on how they spend their Robux due to inflation concerns. Investors are worried about the fact that bookings, a key measure of future revenue, fell 4% in the quarter. Randall Kroszner, former governor at the Federal Reserve, told CNN that while inflation has likely peaked, it will take at least a year before inflation returns to the 2% level targeted by the Fed. Even though inflation cooled off considerably in July, the cost of living remains uncomfortably high and may not get back to normal levels anytime soon. Still, Kroszner warns there is a “heightened risk” of recession over the next year or two because the Fed is raising interest rates and fiscal stimulus is unlikely.

Way too early to declare victory on inflation, ex-Fed official says

But after the better than expected inflation news was released, odds for that big of a hike have fallen to just 37.5%. In other words, Wall Street is now expecting a 62.5% chance that the Fed will raise rates by just a half-point at its next meeting. That’s up from odds of forex broker rating only 32% for the smaller increase a day ago. Investors cheered the news that inflation cooled off a bit in July. Oil stocks, which have been big market winners in 2022 as crude prices soared following Russia’s invasion of Ukraine, were notable market losers Wednesday.