Inflation worries are still lingering in the US, with prices staying high for both producers and consumers. Surprisingly, though, US stock indices seem unfazed by these concerns, holding steady near their recent highs.
This week, the release of US inflation data caused a stir, leading to an increase in US Treasury yields and a stronger US dollar. Despite initial dips in US stock indices early in the week, most of these losses were recovered by the end of the week.
The market’s ups and downs were clearly visible in the daily VIX chart, showing a sharp jump following the release of US CPI data on Tuesday, followed by reversals in the following days.
While US indices are holding strong, the FTSE 100, a UK-based index, performed exceptionally well this week, fueled by positive economic data from the UK. The slight strengthening of the US dollar also played a role in boosting the FTSE 100, given that many of its constituent companies earn a significant portion of their revenue overseas.
Gold prices also saw a modest rebound this week, supported by technical indicators signaling oversold conditions in the market.
Looking ahead, market watchers are keeping an eye on key economic data and events to gauge market direction. Attention is particularly focused on the British Pound and the Euro, as well as on gold and silver markets, which face challenges from a stronger US dollar and the possibility of delayed interest rate cuts.
Overall, despite persistent inflation concerns, US stock indices remain resilient, with investors closely monitoring developments for any potential impact on market sentiment and direction.
