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Home » Wall Street expects the CPI data to rise

Wall Street expects the CPI data to rise

Futures linked to the DOW JONES rose 0.25% to 33,936 points, while those of the S&P 500 rose 0.19% to 4,144 points. NASDAQ 100 futures were up 0.11% to 13,089 points.

Dow Jones index futures were up 52 basis points, or 0.16%. S&P 500 futures rose 0.1%, while Nasdaq 100 futures fell slightly.

Equity markets ended Tuesday’s session with mixed signs. The S&P 500 ended almost flat, while the Dow Jones rose 0.29% and the Nasdaq Composite fell 0.43%. Nine of the S&P’s 11 major sectors ended positively, led by a 0.9% gain in energy. Technology stocks fell 1%, led by chip names and software giant Microsoft.

Today all eyes will be on the Consumer Price Index (CPI) for March, due to be released just before the bell rings. Economists polled by Dow Jones are predicting that the CPI rose 0.2% in March, compared to a 0.4% rise in February. At the annual rate, the figure could be 5.2% compared to 6% in February.

The report could influence the Federal Reserve’s interest rate decision in May. It could also consolidate the case for an end to the rate hike regime. The Jerome Powell-led institution has been raising interest rates to curb inflation, but the central bank risks pushing the economy into recession if it picks up too quickly.

“It seems like the calm before the storm,” said Ryan Detrick, Carson Group’s chief market strategist. “The volume is small, there were no big movements. Operators expect the large number of CPI”.

But the truth is, it won’t be the only relevant reference of the day. Minutes of the Federal Reserve’s March monetary policy meeting will also be released on Wednesday.and are expected to provide further clues to the thinking behind the central bank’s 25 basis point hike following the collapse of the Silicon Valley bank and the turmoil that rocked the broader banking sector.

Later in the week, the health of the US economy and US consumer spending will be tested as the first quarter earnings season begins. Banking giants JPMorgan Chase, Wells Fargo and Citigroup and healthcare giant Unitedhealth will be among the first to open fire.

Investors also need to keep an eye on Diamondback Energy’s price. As published by Blomberg Agency, the company is considering a sale of non-essential assets in the western Permian Basin.

Tech giant Apple is making headlines after reports that it will open its first brick-and-mortar stores in India next week, underscoring the country’s importance to the company’s future sales and manufacture of iPhones. The Cupertino-based company will open a store in Mumbai on April 18 and in the capital city of Delhi on April 20.

Apple CEO Tim Cook may travel to India to open storesBloomberg reported, citing people familiar with the matter. Cook’s visit, nearly seven years after his first trip, comes as Apple is trying to boost retail sales of its products and local manufacturing operations.

In fixed income, the US 10-year bond yield remains stable at 3.439%, while the 2-year bond yield is 4.054%.

Oil prices are also stabilizing on anticipation of US inflation data. Benchmark Brent crude in Europe rose 0.2% to $85.75 a barrel, while US West Texas Intermediate rose 0.1% to $81.63 a barrel.

Prices rose about 2% on Tuesday on optimism that the Federal Reserve is getting closer to its cycle of rate hikes, which would make the dollar price of oil cheaper for buyers.

This is shown by data from the American Petroleum Institute (API). Crude inventories rose about 380,000 barrels in the week ended April 7th, versus forecasts for a fall of 600,000 barrels by eight analysts polled by Reuters. At the same time, gasoline inventories rose by about 450,000 barrels, compared to an expected 1.6 million barrel fall, according to the report.

The US government will release its stock data this Wednesday after Wall Street opens.

As for currencies, the euro rose 0.15% against the dollar to an exchange rate of $1.093 for each common currency.

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