Stock Market Showing Signs Of Slight Recovery Amidst U.S CPI Report Release

Stock Market Showing Signs Of Slight Recovery Amidst U.S CPI Report Release

Summary:

  • S&P 500 has seen 0.72% growth today.
  • The value of (XAUUSD) gold has shown bullish signals in the market today.

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S&P 500 is rising during trading today

The U.S CPI report which offered an update on price increases across U.S for April was released by the U.S labour department on Wednesday. The report reflected there was some deceleration of inflation figures compared to March, however, the rate of price increases exceeded analyst expectations.

The CPI for April decelerated marginally compared to the March figures. The figures represent how far the Fed will have to go in the future regarding tightening monetary policy to fight the rising prices.

Stock Market Showing Signs Of Slight Recovery Amidst U.S CPI Report Release - 1

S&P 500 Price Chart

Will Gold rally in the wake of the CPI report?

Gold futures have increased in value today, the initial increase came before the CPI report was released by the U.S labor department, and the increase has continued after the release.

The lower than expected CPI figures bode well in the favour of the gold prices as uncertainty arises amongst investors on the Fed's next move. With volatility in the stock markets likely to continue, perhaps investors are trying to hedge their bets, driving the price of gold upwards.

Stock Market Showing Signs Of Slight Recovery Amidst U.S CPI Report Release - 2

Gold Futures Jun’22

Read next: (BTC) Bitcoin’s Price Tanks Along With Equities. U.S. Stock Market Awaits CPI Report, Poor Performance From The FTSE 100. 

Sources: Finance.yahoo.com

Rebecca Duthie

Rebecca Duthie

Remote Editor and writer Intern
FXMAG.COM

Rebecca has a bachelors degree in Investment Management, a Post Graduate Diploma in Financial Planning and is currently enrolled in a Masters program in International Management with a Specialization in International Finance.