1. Home
  2. /News
  3. /Wall Street Falls as Inflation Optimism Fades

Wall Street Falls as Inflation Optimism Fades

Ignacio Teson•Friday, January 17, 2025•2 min read

Wall Street’s three major indices closed lower on Thursday, as enthusiasm from Wednesday’s inflation data cooled. Investors turned their focus to corporate earnings and adjusted expectations for Federal Reserve rate cuts.

SPX

Mixed Signals from Economic Data

Wednesday’s consumer price data eased fears of renewed inflationary pressures, helping indices post their best performance since November 6. However, strong retail sales indicated robust consumer spending, while a slight rise in jobless claims tempered hopes for imminent Fed rate cuts.

Corporate Earnings Highlights

Morgan Stanley shares rose 4.03% after reporting increased fourth-quarter profits. Meanwhile, Bank of America shares fell 0.98%, as its earnings showed modest growth.

The market remains cautious, balancing positive earnings against persistent economic uncertainties.

Other Markets

Mexico’s stock markets closed with losses on Thursday, retreating alongside Wall Street indices. The declines came after three consecutive gains and amid caution ahead of Donald Trump’s return to the presidency on Monday. The S&P/BMV IPC, the main index of the Mexican Stock Exchange, dropped 0.59% to close at 49,948.15 points.

Meanwhile, the FTSE BIVA, the benchmark of the Institutional Stock Exchange, declined 0.72% to 1,011.78 points. Markets remain wary as geopolitical and economic uncertainties weigh on investor sentiment.

The EuroStoxx 50 ended Thursday, January 16, on a positive note, posting a significant rise of 1.39% to close at 5,102.13 points. The index reached an intraday high of 5,107.32 points and a low of 5,065.23 points, with a trading range of 0.82%.

Over the past week, the EuroStoxx 50 has gained 1.68%, extending its annual growth to 14.25%. The index also sits 4.74% above its year-to-date low of 4,871.45 points, reflecting ongoing market momentum.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Ignacio Teson
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Add 3442

HFM crypto add fxleaders

Add 3440