tl;dr
Stock index futures fell on Thursday, while yields were almost flat, a day after hotter-than-expected inflation data dampened hopes of rate cuts in June. S&P 500 futures (SPX) -0.4%, Nasdaq 100 futures (NDX:IND) -0.4%, and Dow futures (INDU) -0.4%. Rates were almost unchanged, a day after the U.S. T...
Stock index futures fell on Thursday, while yields were almost flat, a day after hotter-than-expected inflation data dampened hopes of rate cuts in June. S&P 500 futures (SPX) -0.4%, Nasdaq 100 futures (NDX:IND) -0.4%, and Dow futures (INDU) -0.4%. Rates were almost unchanged, a day after the U.S. Treasury yields rocketed higher. The 10-year Treasury yield (US10Y) rose 1 basis point to 4.55%, while the 2-year yield (US2Y) was unchanged at 4.97% on Thursday. The Consumer Price Index climbed 0.4% in March, the same increase as in February, exceeding the 0.3% rise that economists expected. The hot March inflation data highlighted the sticky nature of inflation in Q1 2024, and will likely mean that the Federal Reserve will be in no rush to ease policy. "Markets saw an aggressive selloff yesterday, as another upside surprise in US inflation meant bonds and equities both slumped," said Deutsche Bank's Henry Allen. It is getting increasingly difficult to dismiss this as just a temporary bump, and the major concern is that inflation is ending up sticky above the Fed’s target, Allen added. "Our inflation base case remains optimistic, as all six of the drivers of the post-Covid surge look benign," said Pantheon Macroeconomics. "March FOMC Minutes and March CPI suggest that the marriage between the FOMC and disinflation is heading for a divorce ... Fact is, there is no return to 2% inflation without markedly slower growth, no matter how one wants to parse any one month’s inflation data," said Steven Blitz, economist at GlobalData TS Lombard. All eyes will be on the producer price index for March, which is expected to land today before the bell. Economists expect the PPI to have risen 0.3% last month, with a 2.2% annual rise. "We think the March PPI was constrained by declining gross retail and wholesale margins, captured in the trade services component, which accounts for nearly a quarter of the core PPI," Pantheon Macro said. The weekly initial jobless claims report is also slated to hit at the same time and is forecasted to show a fall to 216K.
Disclaimer: The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.