FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
Libertex information and reviews
FxPro information and reviews

Wall Street indexes declined

14 July 2022

The major stock market news today is about Wall Street indexes declining due to speculation that the U.S. Federal Reserve would raise interest rates. According to a study from the Labor Department, the Consumer Price Index (CPI), which analyzes how much money urban consumers spend on a variety of items, increased in June by 1.3 percent on a monthly basis and 9.1 percent on an annual basis. Higher-than-expected inflation figures overshadowed the rising prices. Economists implied that the annual CPI would rise by 8.8 percent. They also assumed that monthly CPI would rise by 1.1 percent. Overall the core CPI, which does not include volatile food and energy costs, increased year over year by a higher-than-expected 5.9 percent.

As the US GDP expands, the value of the stock market rises. The stock market should reach new highs as our economy grows, more jobs mean more earnings rise over time. In cycles, the economy also operates. For a few years, new enterprises will start up and employers will take on new workers. Due to the increase in employment, more individuals spend money. As a result, firms are able to hire additional staff members and improve earnings.

In recent years, equities have fallen roughly every seven to eight years. Major bear markets occurred in 1973, 1980, 1987, 2000, and 2007. We should soon have a bear market if the trend holds. That indicates that we are making new highs while the bull market is coming to an end. Examining the p/e ratio of the S&P 500 is one of the finest ways to determine whether the market is overpriced. . They divide the stock’s price by its earnings. The average over time is roughly 15. But as of right now, we have reached above 25. Even though we are at record highs, this valuation indicates that we definitely shouldn’t be at these levels.

The case for a 75 basis point increase in interest rates later this month was strengthened by the 40-year high inflation rate. By December 2022, investors now anticipate the terminal rate to reach 3.60 percent, up from 3.41 percent before the data. Fears of an economic slump have increased as central banks prepare to aggressively boost borrowing prices to rein in runaway inflation.




The Pound is having tough times
The Pound is having tough times

The Pound Sterling is keeping balance against the USD as much as possible. The current quote for the instrument is 1.0800. The news released yesterday were rather puzzling. The Bank of England announced...

29 Sep 2022

EUR/USD: bears now target 0.9500
EUR/USD: bears now target 0.9500

EUR/USD drops for the seventh straight session and tests 0.9535. Below the 2022 low at 0.9535 comes the 0.9500 region. EUR/USD extends the leg lower to the proximity of 0.9530 earlier on Wednesday...

28 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back in March...

27 Sep 2022

Penny Stocks: What Are They?
Penny Stocks: What Are They?

Locating penny stocks with buy ratings is getting more and more challenging. The markets become less adventurous as interest rates rise. That indicates that penny stocks, which are riskier by definition...

20 Sep 2022

Bitcoin and Ethereum: Inflation Brought Down The Prices
Bitcoin and Ethereum: Inflation Brought Down The Prices

Strong inflation brought down the price of bitcoin yesterday from $22,800 to the $20,000 support level. This morning, the price of Ethereum formed a new seven-day low at the $1550 level...

15 Sep 2022

Cooler USD & Stocks Higher Ahead of CPI
Cooler USD & Stocks Higher Ahead of CPI

USDIndex – Slips (108.00 tested) for a 5th straight day, lifting EUR & GBP. Fed Funds Futures back to 90% chance of 75 bp (third consecutive) hike...

14 Sep 2022

Editors' Picks

HFM information and reviews
IronFX information and reviews
FXCM information and reviews
NordFX information and reviews
Vantage information and reviews
FP Markets information and reviews
FP Markets

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.