September 2022 seen as the peak of the Fed’s Hawkish stance, Wall Street consistently moved in the Green at the beginning of the week. Investors combined projections that the US is entering a period of deflation, with a forecast of a +75Bps hike in September FFR, drawing the conclusion that the Fed’s Hawkish peak will occur this month. Meanwhile, the Nasdaq led Wall Street’s gains by up more than 1%, as Apple Inc shares rose nearly 4% after the launch of a number of new products, including the iPhone 14, whose Pre-Order exceeded expectations. US deflation is projected to occur at the consumer and producer levels. CPI and PPI Final Demand Aug. The US is projected to post -0.1% MoM deflation each. Meanwhile, the CME FedWatch survey estimates the probability of a September FFR hike of +75Bps to reach the level of 92%.

Investors are still calculating the impact of the increase in subsidized fuel, keeping the JCI from the 7,300 level. NHKSI Research projects that JCI will move Bullish, with Support: 7,220 / 7,180-7,165 / 7.070 / 7.015 and Resistance: 7,260-7,280 / 7,300 / 7,350. Previously, BI reported that the inflation rate until the second week of September 2022 was 0.77% MoM, with the main commodities contributing to inflation including gasoline, rice and transportation fares. Earlier in the week, the JCI was under pressure to a level of 7,218, before finally closing up 11 points to a level of 7,254. Eight of the eleven sectors strengthened, with Energy, Property and Healthcare leading the sector gains.

Download full report HERE.