Last Updated: 4:02 PM EST
Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX) and the S&P 500 (SPX) gained 1.33% and 0.85%, respectively. This comes after this morning’s inflation data. In May, the headline consumer price index (CPI) jumped 3.3% year-over-year but remained flat month-over-month.
In addition, core CPI, which removes volatile items like food and energy, jumped 3.4% year-over-year and 0.2% month-over-month. As a result, all four metrics were below expectations and lower than last month’s readings.
Although investors may be optimistic at the moment—they are currently pricing in a 57% chance of a rate cut in September, up from 47% yesterday—these inflation figures are still well above the Federal Reserve’s 2% target and suggest that rate cuts will likely be pushed further out. Indeed, Jerome Powell stated, as usual, that more data is needed to confirm that inflation is reliably trending downward.
First Published: 4:40 AM EST
U.S. futures inched higher on Wednesday morning as investors looked forward to the Federal Reserve’s interest rate decision and key inflation data for May. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.05%, 0.06%, and 0.1%, respectively, at 4.07 a.m. EST, June 12.
In yesterday’s trading session, both the S&P 500 and the Nasdaq Composite hit a new record high and closed higher by 0.88% and 0.27%, respectively. The upside came after Apple (AAPL) stock gained over 7% on plans to integrate artificial intelligence (AI) into its technology.
In other major news, Oracle (ORCL) jumped nearly 9.5% in the extended trading session on a strong revenue outlook. Further, Casey’s General (CASY) surged about 6% on better-than-expected Q4 results.
Regarding today’s economic calendar, the central bank is widely expected to keep the interest rate steady. However, any cues on the Fed’s future course will drive market movement. Fed Chair Jerome Powell’s speech will take center stage today as he shares insights into the U.S. economy’s health. The federal funds rate is currently at a 22-year high, between 5.25% and 5.50%.
Furthermore, the Consumer Price Index (CPI) report is scheduled for release today. This key report sheds light on price trends in the economy and holds significance for the Federal Reserve’s monetary policy decisions. Economists expect the core inflation rate in May, which excludes prices for food and energy, to have increased by 0.3% from April 2024.
Moving to corporate earnings, Broadcom (AVGO), Dave & Buster’s Entertainment (PLAY), and Oxford Industries (OXM) are slated to release results today.
Meanwhile, the U.S. 10-year treasury yield remained unchanged at the time of writing, floating near 4.40%. At the same time, WTI crude oil futures trended higher, hovering near $78.42 per barrel as of the last check.
Elsewhere, European markets opened higher today as investors looked ahead to the U.S. Federal Reserve’s meeting decision and key U.S. inflation data due today.
Asia-Pacific Markets Traded Mixed on Wednesday
Asia-Pacific indices traded mixed today as the markets geared up for the U.S. central bank’s interest rate decision. Simultaneously, investors evaluated China’s lower-than-expected inflation data and the hot corporate goods inflation report from Japan.
Hong Kong’s Hang Seng index was down 1.28%. Similarly, Japan’s Nikkei and Topix indices finished lower by 0.66% and 0.73%, respectively. However, China’s Shanghai Composite and Shenzhen Component indices ended up by 0.31% and 0.08%, respectively.
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