US stocks rose despite Powell's speech

Wall Street rose on Tuesday

Yesterday has been a positive day for the US stock market.

All three major indexes have closed in profit.

The S&P 500 closed at +0.70%, the Nasdaq ended the trading session at +1.01% and the Dow Jones closed at +0.56%.

Investors are confident that the upcoming inflation data will be positive and they are actively buying.

Jerome Powell's yesterday speech

The Federal Reserve president Jerome Powell has spoken yesterday during the Sveriges Riksbank International Symposium on Central Bank Independence in Stockholm in Sweden.

Mr Powell said that the central bank's main focus is to cool down inflation by slowing economic growth through a series of interest-rate hikes.

While working and implementing its monetary policy to fight inflation, the Fed is trying to avoid big economic damage that can cause high unemployment.

Global economic growth slows down

Based on the latest report of the World Bank global economic growth is forecasted to be 1.7% in 2023.

The previous estimation of global growth released, in June 2022, was 3%.

The World Bank has significantly lowered the growth forecast due to the persistently high inflation and the possibility of a global recession.

Sentiment Indicator - Fear & Greed Index

The market sentiment is at 51 in the "Neutral" mode.

The investor sentiment is getting higher during the past few days and is going towards "Greed" mode.

FedWatch Tool - FED rates probabilities

78.7% of investors are expecting the FED to increase the interest rates by 0.25% at the next meeting.

The remaining 21.3% are expecting a 0.50% rate increase.

The number of investors expecting a rate increase of 0.25% is a little bit higher than yesterday.

No other options are considered at this time.

The next FED meeting is on 1 February 2023.

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