- US stocks rose for a fourth day, while the dollar fell, as risk sentiment was buoyed by speculation that inflation was nearing its peak.
- The S&P 500 advanced, with the energy and technology sectors outperforming all 11 major industry groups. A dollar index fell for a second day, while all g-10 peers rose against the greenback. Treasuries were mixed, with 10-year yields rising following the auction of comparable-maturity notes.
- The headline Consumer Price Index in the United States is expected to fall to 8% year on year in August, while the core measure, which excludes food and energy, is expected to rise. Meanwhile, traders are almost certain of another jumbo-sized federal reserve hike next week, following two 75-basis-point increases, based on comments from central bank officials who support that view.
- Bond market indicators indicate that investors are gaining confidence that this year's surge in inflationary pressures will be contained. The cost of hedging against high inflation has decreased, as have so-called breakeven rates on treasury inflation-protected securities, which serve as a proxy for where markets expect inflation to be.
