Breaking News: Wall Street Reacts to Fed’s Shocking Announcement
On Friday, US equity indexes closed in positive territory as Wall Street carefully considered statements from Federal Reserve officials hinting at a potential temporary pause in interest rate hikes during their upcoming September meeting.
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Here are some key highlights from the day:
- Wholesale inventory data for July showed a 0.2% decrease, slightly higher than the expected 0.1% decline and following June’s 0.7% drop.
- In the realm of consumer credit, July saw an increase of $10.4 billion, falling short of the anticipated $16 billion rise. Additionally, the previous month’s gain was revised down from $14 billion.
- Kroger (KR) and Albertsons (ACI) both experienced gains in their stock prices, with Kroger up 3.1% and Albertsons up 2.4%. This surge followed their agreement to sell 413 stores to C&S Wholesale Grocers, a move aimed at addressing antitrust concerns arising from their $24.6 billion merger. Kroger also committed to a $1.4 billion settlement to resolve opioid-related claims.
- The US government initiated an investigation into Chinese-made chips used by Huawei Technologies as part of the ongoing technological rivalry between the two nations.
- West Texas Intermediate Crude Oil (WTI) for the October contract reached a 10-month high, closing at $87.51 per barrel. Meanwhile, November Brent crude, the global benchmark, rose by $0.81 to $90.73 per barrel. These price increases were attributed to shrinking US inventories and tight global oil supplies.