Last Updated 4:00 PM EST
Stock indices finished today’s trading session in the green after today’s CPI data came in as expected. The Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) gained 1.05%, 1.67%, and 2.32%, respectively.
The consumer staples sector (XLP) was the session’s laggard, as it gained 0.85%. Conversely, the communications sector (XLC) was the session’s leader, with a gain of 2.81%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.66%. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.22%. This brings the spread between them to -56 basis points.
Compared to yesterday, the market is pricing in a higher chance of a higher Fed Funds rate for June 2023. In fact, the market’s expectations for a rate in the range of 5% to 5.25% increased to 35% compared to yesterday’s expectations of 0.6%.
In addition, the market is now also assigning an 18.4% probability to a range of 4.5% to 4.75%. For reference, investors had assigned a 49.5% chance yesterday.
Last updated: 3:00 PM EST
Stock indices are trending lower heading into the final hour of today’s trading session as they hover relatively close to their intraday lows. Nevertheless, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are still up 1.54%, 0.9%, and 0.4%, respectively, as of 3:00 p.m. EST.
Last updated: 11:30 AM EST
Today’s stock market rally continues to pick up steam as the major indices hover around their intraday highs. As of 11:30 am EST, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 2.4%, 2.1%, and 1.5%, respectively.
Last updated: 9:32 AM EST
Major U.S. indices are surging higher on Tuesday morning after the CPI data came in as expected. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 1.4%, 1.3%, and 0.8%, respectively, as of 9:32 a.m. EST, March 14.
First published:5:50AM EST
Whether or not the Federal Reserve will reverse its hawkish interest rate stance depends mostly on February’s consumer price index (CPI) reading, set to be released at 8:30 a.m. EST, today. As per Dow Jones’ estimates, the CPI is expected to rise 0.4% over January, while the annual headline inflation number is pegged at 6%, below January’s reading of 6.4%.
If the inflation reading comes above estimates, markets will witness a further sell-off, while a lower-than-expected number will give some confidence to market participants and signal a possible short-term uptrend. In the meantime, traders are rushing to safer investment options, namely U.S. Treasury bonds, and gold, pushing their rates higher.
Other important economic data sets scheduled for release this week include the producer price index (PPI), retail sales, and consumer sentiment numbers. After the Silicon Valley Bank collapse, markets now expect a 0 to 25 basis point increase in rates.
Meanwhile, European indices are trading mixed today, fueled by the pessimism stemming from the U.S. banks’ woes.
Asia-Pacific Markets End in the Red
Asia-Pacific markets ended the trading session in the red today, led by steep losses in the U.S. banking sector. Hong Kong’s Hang Seng, China’s Shanghai Composite, and Shenzhen Component indices ended the day down 2.27%, 0.72%, and 0.78%, respectively.
Similarly, Japan’s Nikkei and Topix indices ended the day down 2.19% and 2.67%, respectively, dragged down by financial stocks.
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