Investing.com – The American lost 2.04% of its value to 108.22 against a basket of foreign currencies, on the other hand US indices, digital currencies, the euro, emerging currencies and gold rose.
This came after positive inflation data revealed a slowdown in inflation, giving the Fed an opportunity to slow down its tightening pace.
Futures rose to $1747.35 an ounce, while spot contracts rose to $1743.98, as well as Bit rose 1.16% to trade at $21.573 an ounce.
It rose by 5.8%, adding 600 points in one go, while Bit rose by 2.78%, adding 903 points in one go, and the S&P 500 by 4.41%.
The PHLX housing index jumped 10.3% to a two-month high after being battered this year on concerns about rising rates affecting affordability.
The Russell 2000 index of small cap companies rose 5.1%.
Rivian Automotive Inc rose 13.8% after the electric car maker reported a smaller-than-expected loss, a higher number of pre-orders, and reaffirmed its full-year production forecast.
Meanwhile, Republicans came close to securing a majority in the US House of Representatives while control of the Senate hinged on a few tight races, two days after Democrats avoided the expected “red wave” of Republican gains in the midterm elections.
Advance issues outnumbered losers by 11.59 to 1 on the New York Stock Exchange and 5.60 to 1 on the Nasdaq.
The S&P hit a new high of 13 times in 52 weeks and no new low, while the Nasdaq hit 70 new highs and 93 new lows.
It rose to its highest point in more than two months, as it recorded 1.0165, up by 1.53% against the dollar, and also rose by more than 0.5% to trade at 18.4947 pounds against the dollar.
It rose by 0.76% at $86.5 a barrel and oil by 0.97% to $93.50 a barrel.
The US bond yields continued to collapse, as the 10-year yield fell by 6.83% to record 3.859%, and the two-year yields fell by 6.53% to record 4.3259%.
The leading stocks in the US market, including Tesla (NASDAQ:), Amazon (NASDAQ:) and Apple (NASDAQ:) Bit, rose 6.27%, 12.57% and 5.98%, respectively.
It also rose strongly after reducing its violent losses that it incurred after the FTX crisis and bankruptcy, and now records $ 17733.3 for the symbol, up by 3.51%, after returning by more than 88% at the beginning of the session, and Ethereum rose by 14.51% to record $ 1334.97 for the symbol. As well as Cardano, Dogecoin and Polygon with 8.38%, 5.78%, 8.87%, and 23.20%, respectively.
It also rose by 15.66% to 18.518%, but its weekly losses are still 42.81%.
Fed member Mary Daly said the CPI data was good. Meanwhile, Fed member, Harker, expected the Fed to stop raising interest rates when they reach 4.5%, noting that a rate hike of less than 75 basis points is now likely. Harker said there are clear signs of slowing down the US economy.
Daly said that a positive one-month data is not a complete victory, and a drop to 7.7% is not close to the Fed’s target.
Daly confirmed that more rate hikes are coming in the upcoming meetings, but now we have to slow down the rate hike.
Reasons for ascent
It rose on an annual basis by 7.7%, while experts expected it to rise by 8.0%, and it is mentioned that it rose by 8.2% in the last reading.
While the main rose monthly by 0.4%, and experts expected it to rise by 0.6%.
Investors and experts lowered their pricing and expectations for the Fed’s next interest rate decision in December, falling below 75 basis points.
Refinitiv said the drop in inflation data in October indicates that inflation has already peaked and will begin to decline gradually, which could give the Fed the ability to pace a less aggressive rate hike.
The US market short-term trade has priced the maximum rate hike at 4.75% to 5.00%, to reach that level in March 2023.