On June 24, local time, the three major U.S. stock indexes collectively closed sharply higher. The Dow Jones Index rose more than 800 points to 31,500.68 points, an increase of 2.68%, breaking away from a three-week losing streak.

reporter: Zhang Lingxiao editor: Gao Han

On June 24, local time, the three major U.S. stock indexes collectively closed sharply higher. Dow Jones Index rose more than 800 points to 31500.68 points, an increase of 2.68%, breaking away from the three-week losing trend. The S&P 500 index rose 3.06% to close at 3911.74 points. The Nasdaq Composite Index rose 3.34% to close at 11607.62 points.

Image source: Futu Niuniu screenshot

University of Michigan The fall in long-term inflation expectations indicators has boosted market confidence. Analysts believe that the Federal Reserve will be more aggressive the pace of interest rate hikes may slow down due to the cooling of inflation expectations. The latest data released by

html on the 24th showed that the final value of the one-year inflation expectation of U.S. consumers in June was 5.3%, the expected value was 5.4%, and the initial value was 5.4%. This means that the data has dropped from the 14-year high in the June preliminary report. Points fall back. Additionally, survey respondents expect prices to rise 3.1% over the next five to 10 years, below expectations and the initial estimate of 3.3%.

"Overall, the pullback in long-term inflation expectations is driven by an increase in the share of consumers who expect very low inflation in the coming years," Joanne Hsu, director of the University of Michigan Consumer Survey, said in a statement. "About half of consumers in the survey expressed pessimism about the risk of economic recession or unemployment."

In April this year, the University of Michigan's one-year inflation expectation reached 5.4%, the highest level since December 1981. Last week, the Federal Reserve aggressively raised interest rates by 75 basis points, the most since 1994. Federal Reserve Chairman Jerome Powell has said that the University of Michigan data and other recent inflation indicators help guide policymakers to raise interest rates by 75 basis points instead of 50 basis points.

In addition, James Bullard, President of the Federal Reserve Bank of St. Louis, said in a speech on the 24th that the risk of recession in the U.S. economy was "over exaggerated."

On June 24, local time, James Bullard, a "hawkish" official of the Federal Reserve and President of the Federal Reserve Bank of St. Louis, said at a discussion event hosted by UBS that it is too early to discuss a U.S. economic recession because there is no sign that household spending A substantial pullback is imminent, with the impact of reopening expected to last into the fourth quarter of 2022.

But when it comes to raising interest rates, Bullard remains hawkish. He believes the Fed needs to raise interest rates bluntly and aggressively to bring inflation back to its 2% target. "There are certain circumstances where raising interest rates sooner is a good idea. We need to nip inflation in the bud before it takes root in the economy. If everything goes according to plan, inflation will fall, but a lot of times things don't Develop according to plan. "He said he hoped that the interest rate could rise to 3.5% by the end of this year.

Bullard said that the U.S. economy has shown "tremendous resilience" and that raising interest rates will slow the economy to "trend levels."

Daily Economic News

Daily Economic News