Stocks across the U.S. and Europe fluctuated on Tuesday as investors brace themselves for further interest rate hikes despite positive inflation data.
Although the Federal Reserve and the European Central Bank (ECB) have both claimed that they are now winning the battle against inflation, both central banks have cautioned that further rate hikes may be necessary in the future as a means of attaining price stability. The ECB is set to make its latest interest rate decision on July 27. Currently, the market is betting on a quarter percentage point rise.
In the U.S., futures on the S&P 500 edged 0.1% higher and those on the Nasdaq Composite Index gained 0.2% following comments by the Federal Reserve that further monetary tightening may be needed later in the year. Contracts listed on the Dow Jones Industrial Average remained little changed.
The Stoxx Europe 600 rose 0.4% at 8:21 a.m. London time, putting the pan-European index on course to its third consecutive daily rise.