Wall Street closed higher, responding positively to the Fed’s efforts to control inflation. The Dow Jones index was up 0.74%, while S&P 500 and Nasdaq up 1.13% and 1.95%, respectively. The Fed believes that US inflation is too high, and the central bank has the opportunity to raise the Fed Funds Rate (FFR) by more than 25 bps per increase. Market participants project an FFR of 50 bps in the near term, after last week’s increase of 25 bps to 0.25%-0.50%.
From the domestic market, JCI managed to close at the highest level in history, surpassing the psychological level. JCI closed at 7,000.82 or up 0.66% from trading the previous day. The JCI’s strengthening was supported by increases in all sectors, with the basic materials sector leading the increase, or up nearly 2%. They are then followed by the energy and technology sector. Today, we project the JCI to move upwards, still in the range of 6,900 – 7,100.
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