United States equity markets experienced a decline on Friday. At the close of trading in New York, the Dow Jones Industrial Average stood at 45,545 points, representing a decrease of 0.2 percent from the previous session.
The broader S&P 500 index followed suit, closing around 6,460 points, down 0.6 percent. The Nasdaq 100, a key indicator for the technology sector, calculated at approximately 23,415 points, marking a 1.2 percent decrease.
Market participants had widely anticipated a potential interest rate cut by the US Federal Reserve in September, with Fed Chair Jerome Powell recently signaling openness to such a move given potential risks to the labor market. However, newly released data on Friday indicated a rise in inflation during July. Core inflation, which excludes volatile food and energy costs and is a key metric for the central bank, registered a seasonally adjusted annual rate of 2.9 percent – its highest level since February. This presents a challenge for Powell and his colleagues as they attempt to balance the Fed’s dual mandates of maximizing employment and maintaining a 2 percent inflation rate.
In currency markets, the Euro gained some strength. The exchange rate stood at 1.1699 US dollars per Euro, equating to 0.8548 US dollars per Euro.
Gold prices increased, with a fine ounce trading at 3,447 US dollars, a gain of 1.0 percent, corresponding to a price of 94.73 Euros per gram.
Meanwhile, oil prices edged lower. Brent crude, the benchmark North Sea variety, closed at 68.12 US dollars per barrel, a decrease of 50 cents, or 0.7 percent, from the previous session’s close.
