US stock markets are on the rise!

At the opening of the New York stock exchange, the Dow Jones index gained over 150 points and rose 0.5 percent to 35,596.57 points. The S&P 500 index rose 0.09 percent to 4,554.87, while the Nasdaq index gained 0.05 percent to 14,265.05 points.

While the data announced in the country supported the expectations that the US Federal Reserve (Fed) could start cutting interest rates next year, a positive course was observed in the stock markets at the opening.

Personal consumption expenditures in the US increased by 0.2 percent in October, in line with expectations. The core personal consumption expenditures price index, which excludes food and energy items that the Fed considers as inflation indicators, increased by 0.2 percent on a monthly basis and 3.5 percent on an annual basis in the same period.

Analysts noted that data on personal consumption expenditures pointed to a cooling in demand, which could further strengthen expectations that the Fed has come to the end of interest rate hikes. The number of first-time jobless claims in the US rose to 218,000 last week, below market expectations. The number of ongoing jobless claims increased by 86 thousand to 1 million 927 thousand, the highest level since November 2021.

Statements by Fed officials were also followed, with San Francisco Fed President Mary Daly stating that the latest inflation data was encouraging but that early victory should not be declared. Saying that they should be prepared to raise interest rates again if necessary or to say that the tightening cycle is complete if appropriate, Daly emphasized that there should be no rush. Daly pointed out that it is too early to know whether the Fed has finished raising interest rates. New York Fed President John Williams also noted that it would be appropriate to keep monetary policy restrictive for a while and that the Fed is at or near the peak of its interest rate target. Pointing out that the Fed may raise interest rates again if inflation pressure continues, Williams said inflation will approach 2 percent in 2025.