Wall St rebounds on Fed bets but set for weekly loss

Xavier Trudeau
Août 12, 2017

Wall Street stocks rose on Friday (Aug 11), ending a three-day slide on worries about North Korea as investors stepped in to take advantage of a brief pullback in leading technology stocks.

Weaker-than-expected July consumer price data pointed to benign inflation that could cause the Federal Reserve to hold off from raising rates again this year. "Hopefully Kim Jong Un will find another path", tweeted, US President Donald Trump in another warning to N Korea on Friday.

President Donald Trump kept the heat on North Korea, warning that the USA military is "locked and loaded" in the event of a misstep by the totalitarian state. "You're less than 2 percent off the high for the S&P heading into a weekend where uncertainty with North Korea still lingers", Lerner said.

The Dow Jones industrial average closed 14.31 points higher at 21,858.32 after briefly dipping into the negative territory.

"If earnings can stay strong and interest rates remain low, investors can look beyond North Korea and continue to rally equities", Phipps said.

Traders saw the chance of a rate hike in December falling to 40 percent from 42 percent before Friday's data, according to Federal funds futures.

Nearly US$1 trillion has been wiped out from global equity markets since Trump's vow on Tuesday to unleash "fire and fury" on North Korea if it threatens the US. It has fallen more than 1 percent on only three days this year. The index posted its second-worst weekly performance of the year. At least 12 brokerages cut their price targets on the stock.

J.C. Penney Co finished down 16.6 percent after hitting a record low following the retailer's bigger-than-expected quarterly loss.

People walk by New York Stock Exchange (NYSE) in the financial district in New York, US, August 10, 2017.

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